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Users Bet On Increased Volatility as BTC and BCH Prepare For Halving

Published 29/03/2024, 11:41
© Reuters.  Users Bet On Increased Volatility as BTC and BCH Prepare For Halving
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Coin Edition -

  • BCH rebounded significantly, climbing above $500 a few days before its next halving event.
  • Data from Coinglass shows a significant increase in Open Interest in BCH-backed futures.
  • BTC has gained 7% this week with the return of the bulls after a two-week bearish period.

Bitcoin Cash (BCH) rebounded significantly, climbing above $500 a few days before its next halving event. The Bitcoin fork bounced off a swing low of around $348 to surpass its highest price since December 2021, according to data from TradingView.

Data from Coinglass shows a significant increase in Open Interest (OI) in BCH-backed futures is partly responsible for the recent surge in the cryptocurrency’s price. At the time of writing, the OI in BCH-tracked futures had more than doubled to $500 million on Thursday from $213 million last week.

The surge in OI continued and recorded an additional 17.71% rally within 24 hours as of Friday morning. As of the time of writing, it has increased by an additional $202 million to $702 million. This surge shows increased leveraged bets on more expected price volatility a few days before the halving event. The crypto community expects BCH halving to happen on April 3, 2024, five days from filing this report.

Bitcoin surged alongside BCH following a recent pullback from its all-time high (ATH) of $73,794, according to data from TradingView. The flagship crypto rebounded from a $64,537 recent low, climbing above $70,000.

BTC has gained 7% this week with the return of the bulls after a two-week bearish period adjudged to be triggered by a profit-taking action after a significant bull run. With the recent rebound, many crypto community members believe Bitcoin is preparing for a new phase of volatility toward the upcoming halving event. Meanwhile, data from Deribit, a leading cryptocurrency options exchange, shows that it will settle $15.2 billion worth of quarterly contracts this Friday, with Bitcoin accounting for $9.5 billion of the volume. Users expect this development to catalyze the top crypto’s volatility ahead of the halving event, which will take place on April 20, 2024.

The post Users Bet On Increased Volatility as BTC and BCH Prepare For Halving appeared first on Coin Edition.

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