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#BCH price surges amid its upcoming halving. Will the trend continue?
Bitcoin Cash stumbled on Wednesday after a three-month-long rally before rebounding shortly after as the blockchain completed its second-ever halving an event where mining rewards are slashed in half.
Bitcoin Cash is a proof-of-work blockchain network and cryptocurrency that was designed to be faster and cheaper to use than Bitcoin. The first Bitcoin Cash halving event took place on April 8, 2020, with miner rewards dropping from 12.5 BCH to 6.25 BCH.
There has been speculation in the lead-up to the halving, with the price of Bitcoin Cash increasing 147.85% over the past three months and 24% over the past 30 days.
However, in the day leading up to the halving, Bitcoin Cash's price dipped by 9.94%, falling to $572.21, as per CoinMarketCap data. However, after the halving, it quickly bounced back, reaching $604, a spike of approximately 5.5%.
The recent price decline led to liquidations totaling $3.9 million, predominantly affecting long positions at $3.3 million, while short positions accounted for $569,540, as per CoinGlass data.