Bitcoin Cash experienced a sharp decline in open interest (OI) of 47% since the recent halving, accompanied by a commensurate drop in price. This downward trend was evident on April 10, with a sudden drop of 7.51% within just three hours.
Comparison with first halving
After the halving, OI fell from $708.5 million to $378.3 million, based on data from CoinGlass. The price drop was 13% over the same period, with fluctuations between $676 and $691. This shift is in stark contrast to the situation after the first halving in 2020, when Bitcoin Cash saw a 4.7% price increase and the OI increased by 10% to $73.86 million.
Debate and visions within the community
Recent developments show that tensions between the Bitcoin and Bitcoin Cash communities are rising again. Adam Back, CEO of Blockstream, has Roger Ver called up returning to the Bitcoin community.
join the f*cking party @rogerkver it’s just warming up. you know you want to. you don’t have to go it alone, be the prodigal son and return.
— Adam Back (@adam3us) March 18, 2024
Ver, nicknamed “Bitcoin Jesus,” remains a prominent proponent of Bitcoin Cash, which he says is more in line with Satoshi Nakamoto’s original vision for Bitcoin. He emphasizes that Bitcoin Cash is superior in functioning as both a store of value and a currency due to its lower transaction fees.
Many investors are strategically positioning themselves for an uptrend in Bitcoin’s price with the impending halving. Currently, Bitcoin’s OI is $34.89 billion, which is significantly higher than before the previous halving.
Implications of current trends
The recent events surrounding Bitcoin Cash highlight the volatility and cyclical economic factors impacting cryptocurrencies. As the community debates and positions itself for future developments, it remains essential to stay informed and strategic in crypto investments. Bitcoin’s upcoming halving could herald a new phase of growth, but as always with crypto, caution remains necessary.
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-cash-ziet-grote-daling-in-open-interest-en-prijs-na-halvering
