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Approaching Bitcoin Cash Halving Trigger the Upsurge of BCH Open Interest

The stimulating effect of Bitcoin Cash halving on its open interest rates 

Bitcoin Cash (BCH) is experiencing a remarkable resurgence in trading interest, evidenced by a significant leap in open interest (OI) to $708.75 million, as reported by CoinGlass. This surge, an 18.26% increase in just 24 hours and a staggering 165% over the past week, comes as the cryptocurrency community anticipates the second-ever BCH halving on April 4. 

This level of open interest in Bitcoin Cash futures perpetual contracts has not been witnessed since May 2021, when BCH's value soared to nearly $1,399, almost 2.5 times its current trading price of $574.84. The upcoming halving event, where miner rewards will be reduced, historically signals a potential increase in the cryptocurrency's value, drawing traders to secure their positions in anticipation. 

March 28 saw a notable day of trading with $190,140 liquidated in short positions and $211,870 in long positions, highlighting the vibrant activity surrounding Bitcoin Cash as the halving event draws near.


Bitcoin Cash mining efforts double as halving nears

In anticipation of the Bitcoin Cash (BCH) halving scheduled for April 4, miners are ramping up their efforts, leading to a remarkable increase in the network's hash rate. According to a user known as "DavidShares" on X, who has an audience of 17,900 followers, the Bitcoin Cash hash rate has doubled in the past week. 

This boost in computational power, essential for mining and processing transactions on the proof-of-work blockchain, indicates miners' strategic moves to maximize rewards before they halve. Historically, halving events reduce miner rewards, in this case, from 12.5 BCH to 6.25 BCH, incentivizing a surge in mining activities to compensate for the anticipated decrease in earnings. 

This heightened activity contrasts starkly with Bitcoin Cash's position relative to Bitcoin, which is approaching its fourth halving amid record highs. Despite BCH still trading significantly below its all-time high of $4,355 reached in December 2017, the community's engagement and optimism remain palpable. 

The temporary adjustment to a different algorithm in 2017, which sped up block creation times, results in BCH's halving occurring slightly earlier than Bitcoin's, further spotlighting the unique dynamics within the BCH ecosystem as these vital events unfold.