Could BCH's Halving Push Its Price Up?
Bitcoin Cash (BCH) had a bit of a stable week as far as its price goes. On the 24th of March it was trading at $222 despite a slight retraction on the 28th, Bitcoin Cash has recovered and is currently trading at $228.
Similarly to Bitcoin (BTC) which had a down-turn in both hash-rate and its difficulty algorithm, Bitcoin Cash has seemingly followed the same course. Bitcoin Cash's hash-rate went from 3.788E on the 24th to 3.3532E today according to BitInfoCharts. A recent decline in hash-rate can be seen in nearly every cryptocurrency.
Bitcoin Cash's Halving
Fortunately, Bitcoin Cash's halving is around the corner. The event is due to take place in less than 6 days when it reaches block #630,000. Once the halving occurs, miner rewards will be cut in half, from 12.5 BCH per block to 6.25 BCH per block.
The countdown can be viewed on Coingecko and elsewhere.
The halving will likely increase Bitcoin Cash's price in the short-term as we've seen with Litecoin's halving that occurred last August. Litecoin's price increased moderately, but later took a tumble as Bitcoin's price declined.
Bitcoin's (BTC) halving is due to occur in a month and will likely affect Bitcoin Cash as well as the entire cryptocurrency ecosystem. Should Bitcoin's price increase sharply following its halving, it could possibly benefit other cryptocurrencies.
The only catch right now is that the cryptocurrency markets seem to be linked to a certain extent to global financial markets. Should the markets take another sharp down-turn, it could affect the cryptocurrency markets negatively.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado