Bitcoin Cash is experiencing extreme volatility after its second Halving.

On April 4, 2024, Bitcoin Cash (BCH) reached a significant milestone with its second halving, sparking significant price volatility. As the crypto industry prepares for the highly anticipated Bitcoin halving, eyes are turning to the potential implications of these two events.

Bitcoin Cash Completes Its Second Halving

The second halving of Bitcoin Cash took place at block 840,000, reducing the miners’ rewards from 6.25 BCH to 3.125 BCH per block, according to Bitcoin.com.

This reduction of supply prompted significant price movements: a drop of 9% a few hours before the event, followed by a rebound of more than 5% right afterwards.

Despite this short-term volatility, BCH saw an increase of 15.45% over the week and 33% over the month preceding the halving. On April 1st, it even reached a three-year high of $701 as anticipation for the halving was at its peak. However, at the time of writing this article, the BCH price has fallen back to $613.88.

A BTC Halving with Uncertain Implications

As attention shifts towards the next Bitcoin halving scheduled for April 20th, speculation is rife about its potential impact on the crypto market as a whole. While some anticipate a price increase, recent research suggests that the halving effect might be less significant than in the past.

Historical data shows a diminishing impact of Bitcoin halvings over time. After impressive gains of 5500% and 1250% following the 2012 and 2016 halvings, the 2020 third halving cycle only registered a 700% rise. This trend suggests a more moderate effect of the fourth halving on the BTC price.

However, the successful launch of Spot Bitcoin ETFs and their high trading volumes could influence halving dynamics.

As Bitcoin Cash emerges from a tumultuous halving and Bitcoin prepares for its own, the crypto market is holding its breath. Although history suggests a bullish impact, the increasing maturity of the market and the emergence of new factors such as Spot Bitcoin ETFs cast a shade of uncertainty.