The halving is often encouraging because it has substantially reduced supply and historically has led to increased demand and higher prices. However, given the COVID-19 pandemic that is devastating the global economy, things are currently anything but normal.
Bitcoin Cash halves this Wednesday, April 8th
According to the BCH block reward accountant, the fifth largest crypto asset by market cap will experience its third halving on Wednesday, April 8th. As with its “big brother” BTC, the block’s rewards will drop from 12.5 to 6.25 coins, while inflation will drop from 3.64% to 1.80%.
The accountant also reports that there are currently 18.37 million BCH in circulation, which is 87.49% of the total of 21 million coins. As with BTC, however, an unknown percentage of it is lost, lost, or inaccessible.
From a price perspective, Bitcoin Cash is stagnating despite a slight recovery this week. Since peaking in 2020 at just under $ 500, the asset has dropped nearly 50% to its current level without enjoying the BTC recovery.
There was no pre-halving pump like the one with(LTC) the BCH may not get much buoyancy this week. Chain metrics appear to be pretty grim for the asset as miners may switch to Bitcoin (BTC) because it is more profitable.
The hash rate has dropped 34% from its 2020 peak and 60% from its all-time high. With a current hash rate of 3.27 EH / s, the state of the BCH network is in the gutter and the situation can worsen as the block reward drops.
Looking into the future of Bitcoin (BTC)?
The Bitcoin network looks much healthier as the halving approaches. BTC’s prices and chain metrics will improve in less than 37 days.
As BeInCrypto previously reported, some key metrics such as hash rates, puell multipliers, and MVRV ratios are becoming bullish. In addition, the hash rate of Bitcoin has returned above 100 EH / s and has been on the upward trend since mid-March.
BTC prices also seem to have bottomed out, and there is likely to be no surrender, as the hash ratio increase suggests.
Bitcoin has managed to stay above $ 7,000 this week, and technical forecast indicators like the stock-to-flow model indicate that the asset is still on its way to big gains after halving it next month. This may not be the case with Bitcoin Cash.
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