Halving of the fifth-largest cryptocurrency - Bitcoin Cash, went almost unnoticed. It happened on April 8 around noon, but the price of Bitcoin Cash was not impacted as much as expected. Although Bitcoin Cash has increased by 16% over the last 7 days, most of the top ten cryptocurrencies have performed similarly. Bitcoin increased by 10%, Ethereum by almost 25%, Ripple by 12% and Litecoin by 16%.

It is therefore clear that the effect of halving of Bitcoin Cash has been overestimated. In the cryptocurrency community, halving is being paid extremely close attention to. The reason is that during halving, the reward for block mining is halved. At Bitcoin Cash, the reward decreased from 12.5 BCH to the current 6.25 BCH. In essence, halving aims at reducing the profitability of mining. This can often force small miners to end mining. They will then try to sell their coins, pushing the price even lower.

Halving does not have to be bullish news. Just look at Litecoin, whose halving took place on August 5, 2019. Since then, the price has dropped from $ 100 to $ 50 in 4 months. At the same time, the hash rate, for example, fell proportionally. For example, Zach Resnick, one of Unbounded Capital's main partners, said that halving is far from being as bullish as everyone thinks. He thinks that in the case of halving, investors can only hardly distinguish correlation from causality. Therefore, Bitcoin Cash does not have to record the increase that its supporters would like to see.