Bitcoin Cash Sends Bitcoin Traders Warning Sign About Halving

Bitcoin Cash (BCH) is sending a warning sign to bitcoin traders about the upcoming halving event. BCH, often seen as a proxy for the Bitcoin blockchain, experienced a 15% slide after its own halving on April 4. This decline is causing traders to reassess their expectations for an immediate post-halving price rise in Bitcoin. The notional open interest in BCH futures has also collapsed by 70% in just seven days, indicating a potential unwinding of bullish bets. Algorithmic trading firm Wintermute suggests that BCH’s decline could foreshadow selling pressure on Bitcoin after its halving on April 20. Analysts have already warned that BTC may experience a “sell the news” type of move following the halving, and JPMorgan even expects a sell-off to $42,000. Despite the anticipation of the halving, Bitcoin’s price has already reached record highs above $73,000. However, post-halving miner sales could create difficulties for bulls trying to push prices higher in the coming months, with an estimated $5 billion worth of BTC potentially being liquidated by miners.