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.
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