The cryptocurrency world is closely watching the ripple effects of Bitcoin Cash (BCH) completing its first-ever block reward halving—an event that has reignited discussions about supply scarcity, mining dynamics, and potential market volatility. While BCH’s price remained relatively flat post-halving, experts suggest this milestone could foreshadow broader trends in the crypto ecosystem, especially as Bitcoin’s own halving event draws near in 2025.
Despite current price stagnation, analysts believe these halving events lay the foundation for long-term bullish momentum across major cryptocurrencies. However, they also caution that reduced mining incentives could lead to increased network vulnerabilities and even another flash crash—particularly if macroeconomic headwinds persist.
Understanding the BCH Halving Event
On April 8, 2025, at approximately 8:19 PM UTC, Bitcoin Cash underwent its inaugural block reward reduction. The miner’s reward dropped from 12.5 BCH per block to 6.25 BCH—a programmed mechanism designed to control inflation and mimic Bitcoin’s scarcity model.
According to market data, BCH’s price dipped slightly from $269.7 to around $264 immediately following the event but has since stabilized near $265.7 without showing any significant breakout movement. This muted reaction contrasts with the high expectations set by some investors ahead of the halving.
👉 Discover how blockchain halvings influence market cycles and investor behavior
Delayed Block Confirmation Raises Network Concerns
One notable technical observation was a nearly two-hour gap before a new block was mined after the halving. This delay raised concerns about network stability and miner commitment.
Xu Kun, Chief Strategy Officer at OKEx, explained that BCH's mining ecosystem has long been dominated by Bitmain-affiliated pools. In recent weeks, there has been a strategic shift where miners used "rented" hash power—commonly known as "mining gun pools"—to temporarily redirect computational resources to BCH in anticipation of potential post-halving price appreciation.
However, with block rewards now cut in half, profitability declines unless the price surges significantly. As a result, many of these opportunistic miners are expected to redirect their hash power back to Bitcoin (BTC), where returns remain more attractive.
Mining Shifts and 51% Attack Risks
Li Lao, COO of Koko Finance, warned that the reduction in mining rewards for both BCH and BSV (Bitcoin SV) would likely trigger a mass migration of mining power toward BTC. This shift could leave smaller networks more vulnerable.
“Post-halving, both BCH and BSV face increased risk of 51% attacks due to declining hash rate concentration,” said Li Lao. “With fewer miners securing the network, malicious actors could theoretically gain control and double-spend coins.”
Such vulnerabilities underscore a structural challenge faced by forked cryptocurrencies: maintaining sufficient decentralized security when competing against Bitcoin’s dominant hash rate.
Market Implications: Supply Scarcity Meets Investor Sentiment
While short-term price action may appear underwhelming, the long-term implications of halving events are rooted in supply-demand fundamentals.
Shang Siling, President of Mars Cloud Mining, emphasized that BCH’s first halving significantly alters its economic model by reducing new coin issuance. He remains optimistic about its future value trajectory but cautions against drawing direct parallels with Bitcoin’s upcoming halving.
“Bitcoin’s third halving in 2025 occurs within a far stronger consensus framework and amid unprecedented global monetary expansion,” Shang noted. “This confluence of macroeconomic instability and digital scarcity creates a unique catalyst for mainstream adoption.”
He believes more institutional investors are beginning to recognize the “halving narrative” as a legitimate driver of asset value—a concept unique to proof-of-work cryptocurrencies.
Bitcoin’s Path Ahead: Consolidation Before the Next Move?
Market data from OKEx shows BTC has maintained a position above the $7,000 resistance level since April 6, trading in a tight range between $7,100 and $7,500. The overall trend follows a “two steps forward, one step back” pattern—indicative of healthy consolidation rather than weakness.
Charles, an analyst at OKEx, advises investors to adopt a strategic buying approach:
“Focus on pullbacks near key support levels like $7,100. If price holds there with strong volume, it presents a solid accumulation opportunity. But if it breaks down on high volume, consider taking defensive positions.”
Could Another Flash Crash Be on the Horizon?
Despite bullish undercurrents, not all outlooks are positive. Henrik Zeberg, a macroeconomist and crypto analyst, recently warned on social media that Bitcoin appears fragile at current levels—particularly around $7,200.
“Both gold and Bitcoin could experience another flash crash,” Zeberg tweeted. “In such a scenario, BTC might plunge toward $1,000.”
While extreme, this view reflects lingering fears about systemic risks stemming from global financial instability and investor panic—factors amplified during periods of low liquidity.
OKEx senior analyst Yansong echoed similar concerns regarding BCH:
“Historically, BCH prices have trended downward following halving events unless accompanied by strong external demand. Without a sharp price increase, mining difficulty adjustments may be necessary to sustain network security.”
👉 Explore real-time market analytics and prepare for the next crypto cycle
Broader Market Reaction: Blockchain Stocks Rally
Amid crypto market uncertainty, traditional markets showed strength in blockchain-related equities:
- The A-share Blockchain 50 Index closed at 3,254.10 points, up 1.87%
- Blockchain sector rose 1.86%, with 153 out of 203 listed stocks advancing
- Digital currency sector gained 1.23%, led by Hailian Jinhuo (+10.08%)
This divergence suggests growing confidence in blockchain infrastructure despite volatility in native token prices.
Frequently Asked Questions (FAQ)
Q: What is a cryptocurrency halving?
A: A halving is a pre-programmed event in proof-of-work blockchains where the block reward given to miners is reduced by 50%. This occurs at regular intervals (e.g., every 210,000 blocks for Bitcoin) to control inflation and enhance scarcity.
Q: Why didn’t BCH’s price rise after the halving?
A: Halvings are often priced in advance by markets. Without fresh demand or strong sentiment shifts, immediate price increases aren’t guaranteed. Historical data shows many assets consolidate or dip post-event before entering bull phases.
Q: Is Bitcoin at risk of a flash crash before its 2025 halving?
A: While possible, especially during macro shocks or liquidity crunches, Bitcoin’s increasing institutional adoption and limited supply make sustained crashes less likely over the long term.
Q: How do halvings affect miners?
A: Miners earn less per block after a halving. If prices don’t rise proportionally, less efficient miners may shut down operations, potentially leading to temporary hash rate drops and centralization risks.
Q: Can smaller networks like BCH survive long-term after halvings?
A: Their survival depends on community support, development activity, and ability to differentiate from Bitcoin. Without strong use cases or adoption growth, smaller forks may struggle post-halving.
Q: What should investors do ahead of Bitcoin’s 2025 halving?
A: Focus on dollar-cost averaging (DCA), monitor on-chain metrics like exchange outflows and miner reserves, and prepare for increased volatility in the months leading up to the event.
👉 Stay ahead of the next market cycle with advanced trading tools and insights
Core Keywords: Bitcoin halving 2025, BCH halving, cryptocurrency flash crash, mining reward reduction, 51% attack risk, BTC price analysis, blockchain market trends