By: Zeng Han-Jun, Head of Research

Bitcoin Cash (BCH) experienced a surge in price last month, attracting renewed interest from investors. However, recent data suggests that the altcoin’s momentum may be waning.

Notably, Bitcoin Cash miners have been rapidly withdrawing their funds, potentially signaling a decline in the coin’s value.

During the height of the Bitcoin Cash surge, trading activity soared, leading to a remarkable 200% increase in price. Consequently, miners flocked to the blockchain in a bid to capitalize on the rising price. However, since then, the value of Bitcoin Cash has dwindled by 28%, and miner enthusiasm has begun to plateau.

Recent data from IntoTheBlock reveals a significant trend of miners withdrawing BCH from mining pool reserves over the past month. Previously, miners held a reserve balance of approximately 7.73 million BCH. Today, that figure has shrunk to around 6.5 million BCH, equivalent to a selloff totaling over $260 million at the current BCH price.

Miners, being instrumental to the Bitcoin Cash network, often exert downward pressure on the coin’s price with their sell-offs. Furthermore, these sell-offs suggest a bearish trend, indicating that miners anticipate a further decrease in BCH value and are selling to lock in profits from the previous bull run in late June.

Another concerning development for Bitcoin Cash is the decline in its hash rate. As miners withdraw their funds, the hashrate, which represents the total mining power devoted to validating BCH transactions, has dropped by more than 50% since reaching a yearly high of 6.27 EH/s on June 30. Presently, the hashrate stands at only 3.11 EH/s.

The significant decrease in mining power highlights that a considerable number of BCH miners have ceased mining the cryptocurrency and have opted to withdraw their investments. Consequently, the miner share of the total market cap of BCH has declined from 40% to 34%.

Despite these indicators of a bearish trend, Bitcoin Cash has not lost all support. The altcoin still benefits from recently amassed investor confidence, with strong trading volume to date. At the time of writing, BCH is trading at $243.65, and its trading volume remains robust, having increased by 73.31% in the past 24 hours.

While the recent Bitcoin Cash miner withdrawals and decrease in hash rate suggest a bearish trend, it remains to be seen if this is merely a temporary setback or a more lasting decline for the altcoin. The current dynamics point to a cautious environment for Bitcoin Cash, but the cryptocurrency continues to enjoy significant support from its investor base. As the market evolves, it will be crucial to closely monitor how these miner withdrawals and market conditions impact the future trajectory of Bitcoin Cash.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.