Bitcoin Cash (BCH) has been experiencing a downward trend in recent weeks, losing 7.3% in the past week alone. This is in preparation for the upcoming halving event in April, which analysts believe will result in a further decline in price.
Miners of BCH have been selling off their holdings, with nearly three million tokens worth over $1 billion being sold since last April. This selling pressure from miners is expected to continue leading up to the halving.
Bitcoin Cash was once a major player in the crypto industry, but it has since dropped out of the top ten cryptocurrencies by market cap. As the halving approaches, there is a possibility that BCH could dip even further in the rankings.
At the time of writing, BCH is trading at $411, showing a slight increase in price despite a decrease in trading volume. However, it has seen a loss of over 7% in the past week after reaching a two-year high of $508 in early March.
The historical data surrounding BCH halving events suggests that holders tend to sell off their coins before the halving occurs. Miners, in particular, are active in this sell-off, as they prepare for the impact of the halving on the price.
Looking at previous halvings, BCH miners have sold off their tokens prior to the event and then increased their holdings afterward. In 2020, miners added 2.7 million BCH tokens to their holdings within six months of the halving, leading to a 480% surge in price. It is expected that this trend will repeat, with the market reversing its downtrend following the halving.
The price action of Bitcoin Cash after the halving will also be influenced by the post-halving performance of Bitcoin (BTC). Historically, BTC and BCH have had a direct correlation in price movements.
It is important to note that this article is for informational purposes only and should not be taken as investment advice. Readers should conduct their own research and consult with financial advisors before making any investment decisions.