The hope and expectation of Bitcoin Cash’s investors and followers, following its halving, seem dashed as the cryptocurrency failed to display significant value increase. Quoting the effect of previous halving events, some analysts asserted that the lasting pandemic is an underlining factor that prevented the cryptocurrency from surging.
Nevertheless, recent data on Bitcoin Cash hashrate indicates that the halving, rather than having positive effects, may be devouring the cryptocurrency.
As revealed by respected analyst Matis Greenspan, data shows that miners are already dumping Bitcoin Cash’s network for Bitcoin. This is subsequent to the halving event of the former this month.
On April 8, Bitcoin Cash had its halving event, slashing miners’ reward by 50% from 12.5 to 6.25. Before the halving, Bitcoin Cash hashrate has been declining, falling from 5EH/s in Feb to 3.5 EH/s on the day of the halving as the price of the 5th largest cryptocurrency also plunged from $492 in February to $165 in March.
However, the BCH hashrate saw a nosedive after the halving. It dropped from 3.5 EH/s to 1.4 EH/ in just a day.
As a result, Mati Greenspan said miners migrating to Bitcoin’s network as Bitcoin Cash is no longer profitable to mine.
“Bitcoin Cash hashrate capitulation. After the halving on April 8th, it’s no longer profitable to mine BCH causing many miners to switch over to BTC”, Mati stated.
On the opposite side, Bitcoin hashrate has been increasing following BCH halving event, an attestation that miners are moving to Bitcoin. Bitcoin’s hashrate surged up from 105 EH/s on April 7 to 118 EH/s on April 11.
Bitcoin Open Interest Futures Back on the rise
Bitcoin futures open interest is now back on the rise following the dip witnessed in mid-March, data obtained from Skew tracking platform confirms.
About one month after the eventful fall Bitcoin futures open interest saw, its chart is visible back on the rise, surpassing $2 billion volume.
On March 13, the open interest fell by 40% in just one day. The fall dropped the volume of the open interest from over $3.5 billion to less than $2 billion. This is at a time the entire cryptocurrency market plunged under the influence of the bear.
Bitcoin futures open interest is timidly rebounding one month after the historic 40% one day sell-off pic.twitter.com/rMXs75Nves
— skew (@skewdotcom) April 13, 2020
While Bitcoin and altcoins are now gradually recovering, Bitcoin futures open interest is also replicating with a slow but steady upsurge.