- Open interest in BCH futures contracts has surged to record highs ahead of upcoming halving event
- BCH hash rate has doubled over past week as more miners devote resources to the network
- BCH halving scheduled for April 4th, will reduce mining reward from 6.25 to 3.125 BCH per block
The price and trading volume of Bitcoin Cash (BCH) have seen notable increases recently as the cryptocurrency’s next halving event approaches.
Surging Open Interest in BCH Futures
In the past week, open interest in BCH futures perpetual contracts has reached record highs, jumping over 18% to $708.75 million according to data from CoinGlass. The last time open interest was this high was in May 2021 when BCH was trading around $1,399, nearly 25 times its current price.
Traders appear to be heavily securing their positions in anticipation of the upcoming halving. Large amounts of long and short positions were liquidated on March 28th as traders jockey for position leading up to the event.
Hash Rate Doubles
In another bullish sign, Bitcoin Cash’s hash rate has doubled over the past week. Hash rate refers to the total computing power being used to mine and process transactions on the network.
A higher hash rate indicates more miners are devoting resources to the Bitcoin Cash blockchain ahead of the halving. More miners typically signals greater network security and interest in the cryptocurrency.
Halving Occurs April 4
The Bitcoin Cash halving is scheduled to take place on April 4th according to NiceHash data. This will reduce the mining reward from 6.25 BCH per block to 3.125 BCH.
The halving occurs slightly earlier than Bitcoin’s because of Bitcoin Cash’s different difficulty adjustment algorithm. While BCH readies for its second halving, Bitcoin is preparing for its fourth halving on April 21st.
Positive Signs Despite Lower Prices
The surging open interest, hash rate and trading volume are positive signs for Bitcoin Cash despite its current price remaining far below its 2017 high. As the halving approaches, BCH appears to be building momentum and attracting greater network activity. The coming days will determine whether this activity translates into a sustained price increase.
