Bitcoin's Sudden Price Collapse
After days of sideways trading, Bitcoin suddenly entered a freefall mode today. According to data from Feixiaohao (a cryptocurrency tracking platform), as of 18:30 UTC, Bitcoin's price stood at $6,938.55 (≈ ¥48,776), marking a 24-hour drop of approximately $375 (5.15% decline).
This sharp downturn coincides with the much-anticipated "halving" season in the crypto sphere. Notably, Bitcoin's two major forks—BCH (Bitcoin Cash) and BSV (Bitcoin SV)—completed their first halvings on April 8 and April 10, respectively. Contrary to investor expectations, both assets experienced significant price drops post-halving.
The Cliff-like Drop: A Timeline
At 13:00 UTC, Bitcoin was trading at $7,151.57. Within just five minutes, it nosedived to $7,011.80—a staggering $140 plunge. The downward trend continued, with QKL123.com reporting a low of $6,853 by 17:46 UTC.
Key Metrics (Past 24 Hours):
- Price Change: -5.15%
- 7-Day Performance: +0.29% (gains nearly erased)
- 30-Day Trend: -10.54%
- 6-Month Outlook: -17.09%
Understanding Bitcoin Halving
Born in 2008, Bitcoin has a capped supply of 21 million coins. Its halving mechanism—designed to incentivize mining—reduces the block reward by 50% every four years. This scarcity model historically boosts Bitcoin's value.
Upcoming Halving (May 2024):
Miner rewards will drop from 12.5 BTC to 6.25 BTC per block. Today's crash occurred amid heightened speculation around this event.
Post-Halving Plunge: BCH and BSV
Both forks recently underwent their first halvings:
- BCH: Halved on April 8 (Block 630,000), reducing rewards from 12.5 BCH to 6.25 BCH.
- BSV: Followed suit on April 10, mirroring the reward structure.
Despite the hype, neither asset saw a post-halving rally. Feixiaohao data shows both plummeted shortly after the events.
The Ripple Effect: Declining Hashrate
Post-halving, miners face reduced rewards for the same workload. This pushes SHA-256-based hashrate toward more lucrative networks (like BTC until its May halving), destabilizing BCH and BSV:
- BCH Metrics (24 Hours Post-Halving):
▶ Mining Difficulty: -45.9%
▶ Hashrate: -61.66%
Block Production Instability:
BCH experienced irregular block output—taking nearly 2 hours to produce Block 630,001 post-halving (vs. the standard 10-minute interval). By contrast, 88 blocks were mined within ~3 hours later that day.
FAQ: Bitcoin's Halving and Price Volatility
Q1: Why does Bitcoin halving impact its price?
A: Reduced supply (due to lower block rewards) historically increases scarcity, potentially driving prices up—though short-term volatility is common.
Q2: What caused today's sudden Bitcoin crash?
A: A combination of profit-taking, miner sell-offs, and market reactions to BCH/BSV halvings likely triggered the sell-off.
Q3: Should investors expect a rebound post-May halving?
A: While past halvings led to long-term gains, immediate post-event drops aren’t uncommon. Market sentiment and macroeconomic factors play crucial roles.
👉 Discover how halving events shape crypto markets
Q4: How does hashrate affect blockchain security?
A: A plummeting hashrate slows block production and raises vulnerability to 51% attacks, further destabilizing prices.
Q5: Are BCH and BSV still viable investments post-halving?
A: Their utility hinges on developer activity and community support. Investors should monitor network stability and adoption trends.
👉 Explore Bitcoin fork fundamentals