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Bitcoin Cash Jumps 7.7% as Halving Arrives, BTC Rally Next?

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Bitcoin is fast approaching the much-awaited halving event, but its main forks will start first. BCH will reduce its block reward today, while BSV will do this later this week.


BCH, BSV Price Hit 1-Month High

The Bitcoin community is preparing for one of the most important events that takes place once every three or four years – the halving. After block 630,000, Bitcoin miners’ reward will be reduced from 12.5 to 6.25. The resulted scarcity is expected to push prices to new highs.

Bitcoin’s main forks, BCH and BSV will start earlier. Bitcoin Cash will slash the reward later today. At the time of writing, 629,933 have been mined so far.

The price of BCH is already surging, gaining 7.70% during the last 24 hours, to $274, as per Coinmarketcap data. The BCH/BTC ratio is also increasing, hitting the highest level since March 7. While the halving event will likely impact the supply/demand ratio in Roger Ver’s cryptocurrency, about a third of BCH coins haven’t been moved since the fork, which makes it scarcer than thought, at least for now.

Elsewhere, Craig Wright’s BSV will experience its halving event tomorrow or on Thursday. However, the coin is performing even better than BCH for now, as it jumped 13% in the last 24 hours, making it the second-best performer among top 100 coins. BSV is now trading at $213.

The halving of BCH and BSV is happening earlier than in BTC because BCH had a different blockchain algorithm at one point, which eased the difficulty of mining. BSV forked from BCH in November 2018. Some analysts expect the halving to be a disaster for BCH, suggesting that many will move Bitcoin.

Will Bitcoin See Similar Price Surge in May?

It’s interesting to observe the price rally in BCH and BSV. It is very likely that Bitcoin will experience the same. The media attention and the general fuss about it will probably support a rally, even though some investors claim that the halving has been already priced in.

But Bitcoin might turn bullish even before halving, as BCH and BSV miners will move to BTC for a while given that the two are less profitable now.

Besides, Bitcoin will benefit from its safe-haven status amid the market turmoil and the Fed’s cash injections.

Bitcoin halving is expected to happen on May 13. Currently, the cryptocurrency is trading below $7,350, gaining 0.60% during the last 24 hours.

Do you think Bitcoin will surge next month? Share your expectations in the comments section!


Images via Shutterstock, Investing.com, Twitter:@coinmetrics





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Dogecoin, CryptoCurrency Reddit communities surge as crypto euphoria heats up

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With much of the market fixated on Bitcoin’s (BTC) sudden price correction over the weekend, retail interest in digital assets appears to be on the rise, according to the latest statistics from Reddit.

The r/dogecoin community added 145,859 weekly subscribers, according to Subreddit Stats. The gains are hardly surprising given DOGE’s dramatic rally over the past week. The meme-based cryptocurrency skyrocketed 400% during that period, bringing its yearly returns to an eye-watering 5,000%.

DOGE’s parabolic rally moderated over the weekend, with social media sentiment data from The TIE and Cointelegraph indicating more pain in the short term. That’s because price action is often correlated with social media engagement; a decline in the latter is sometimes a precursor to bearish price action in the near term. 

Meanwhile, the r/CryptoCurrency community, which is devoted to all things digital assets, added 86,838 new subscribers during the week. New community members were welcomed by platinum award recipient “mirza1h” on Sunday. In a subreddit post, miraza1h said:

“Past week has been insane in the crypto world, so naturally things here weren’t like they normally are. Your curious posts/comments may have been ignored a bit. In the weekend things are a bit more chill, so feel free to ask us anything you want.

The user also introduced new subreddit followers to Moon, the native token of the r/CryptoCurrency community.

Much like DOGE, the overall cryptocurrency market limped into Sunday’s session, having declined by a cumulative $386 billion, according to CoinMarketCap. The digital-asset market cap briefly fell below $1.9 trillion before recovering to around $2 trillion.

Massive shakeouts are nothing new for seasoned cryptocurrency investors. Even during bull markets, declines of 20% or more are fairly common, especially after major rallies. Speculation about an abrupt decline in Bitcoin’s hash power and the possibility of U.S. regulatory action against crypto-friendly banks may have contributed to the decline on Sunday.

Even with the latest decline, the cryptocurrency market is still double the size it was in January when it first crossed the $1 trillion milestone.