As the crypto community gears up for the upcoming halving events for Bitcoin Cash (BCH) and Bitcoin (BTC), a notable surge in price and trading activity has caught the market’s attention. Bitcoin Cash, in particular, has seen a remarkable rally, with its value crossing the $500 mark shortly before its halving, marking its highest price point since December 2021. This resurgence is attributed to a significant increase in Open Interest (OI) in BCH-backed futures, signaling heightened expectations of price volatility surrounding the event.
Open Interest in BCH Futures Skyrockets
The anticipation surrounding Bitcoin Cash’s next halving, scheduled for April 3, 2024, has led to a dramatic increase in the OI for BCH-tracked futures. From $213 million last week, the OI soared to $500 million on Thursday and continued to rise, reaching $702 million by Friday morning. This sharp increase, amounting to an additional $202 million, underscores the market’s leveraged bets on the potential for increased price fluctuations as the halving event approaches.
Bitcoin’s Price Rebounds Amidst Rising Expectations
Bitcoin has also experienced a notable rebound, climbing back above $70,000 after a recent pullback from its all-time high of $73,794. This recovery, characterized by a 7% gain over the week, suggests a renewed bullish sentiment in the aftermath of a profit-taking period that followed a significant bull run. With both Bitcoin and Bitcoin Cash preparing for their respective halving events, market participants are betting on a new phase of volatility, particularly for Bitcoin, whose halving is set for April 20, 2024.
Deribit’s Quarterly Contracts Settlement Spurs Volatility
Adding to the anticipatory atmosphere, Deribit, a leading cryptocurrency options exchange, is set to settle $15.2 billion worth of quarterly contracts, with Bitcoin accounting for $9.5 billion of this volume. This event, happening this Friday, is expected to further catalyze volatility in the top cryptocurrency’s price as traders and investors adjust their positions in preparation for the halving.
Market on Edge for Halving Events
The halving events for both Bitcoin and Bitcoin Cash are closely watched milestones that typically have a significant impact on the crypto market due to their implications for supply dynamics and miner incentives. As these dates draw near, the substantial increase in futures contracts and the heightened activity on options exchanges highlight the crypto community’s expectation for increased market movement, setting the stage for a potentially volatile period in the crypto market.
