Bitcoin Cash (BCH) Open Interest (OI) and its price have experienced a significant decline in the week following its halving event on April 4th. According to CoinGlass data, the OI for Bitcoin Cash dropped by a massive 47% from its peak of $708.5 million to $378.3 million on April 12th. This decline in OI was accompanied by a 13% drop in the price of BCH.
The majority of the price decline occurred on April 10th, with a sharp drop of 7.51% within a three-hour window. Prior to this, BCH had been experiencing relatively stable fluctuations between $676 and $691, as reported by CoinMarketCap.
Bitcoin Cash has been trading between $605 and $691 over the past seven days, which is quite a change from the week after its first-ever halving event in 2020. During that time, BCH saw an increase in momentum, rising 4.7%, while OI rose 10% to $73.86 million.
Bitcoin Cash, which is just under three years old, has been the subject of debates regarding its use cases, particularly its lower transaction processing costs and reduced energy requirements for verifying new blocks.
There has also been renewed conflict between the Bitcoin (BTC) and Bitcoin Cash communities. Blockstream CEO Adam Back recently called for early Bitcoin adopter Roger Ver to rejoin the Bitcoin community after he had previously moved to the Bitcoin Cash community. Ver, known as “Bitcoin Jesus,” is a strong advocate for Bitcoin Cash, arguing that it aligns more closely with Satoshi Nakamoto’s original vision for Bitcoin and is better suited to serve as a store of value and currency due to its lower transaction fees.
While Bitcoin Cash has experienced a decline in OI and price, many investors are still optimistic about Bitcoin as its halving event approaches next week. The OI for Bitcoin currently stands at $34.89 billion, approximately 15 times higher than it was eight days before the halving in May 2020.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.