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Bitcoin Cash (BCH) price fell to $565 after the halving

Bitcoin Cash (BCH) just marked a significant milestone in its life cycle. The cryptocurrency recently experienced its halving event at a block height of 840,000.

This once-in-4-years event ended early morning Asian time.

Bitcoin cash price climbs back to $619 after the decline

The recent halving reduced Bitcoin Cash miners’ rewards from 6.25 BCH to 3.125 BCH. While halvings are generally accompanied by price increases, BCH experienced a sharp decline.

Industry experts had foreseen the possibility of this decline. On April 1, BeInCrypto analyst Aaryamann Shrivastava predicted a 14% decline for BCH following the event.

Read more: Bitcoin Cash (BCH) price prediction 2024/2025/2030

Shrivastava predicted a bearish trend for BCH and suggested that profit-taking would cause the cryptocurrency to lose its support at $650 and slide further to $625. The prediction suggested that breaking this support level would see BCH fall to $572, a 14% decline.

Meanwhile, David Shares, a well-known figure in the Bitcoin Cash community, attributed the price drop to a decline in mining hashrate. In anticipation of the halving, miners had shifted their focus to Bitcoin (BTC). This shift slowed block production times on the BCH network until the difficulty algorithm could adjust.

“[The hashrate drop] also caused the price of BCH to suddenly drop to an intraday low of around $565,” explained David Shares.

Daily Bitcoin Cash Mining Difficulty. Source: Coin Dance

However, at the time of writing, BCH has staged a recovery and is trading at $619. Still, it is important to note that BCH is trading 83.8% below its all-time high of $3,785 reached in December 2017.

Read more: Bitcoin Cash: A complete guide to what it is and how it works

Bitcoin, the original cryptocurrency that gave birth to Bitcoin Cash, will also undergo a halving in April. However, analysts believe that Bitcoin's upcoming halving could diverge from previous patterns. The increasing institutional adoption and success of spot Bitcoin exchange-traded funds (ETFs) in the US is expected to help make this halving one of a kind.

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