Bitcoin Cash is arriving at cryptocurrency exchanges in huge numbers. More than one million BCH coins have landed at trading venues in the last seven days alone.
A hard fork, scheduled for Nov. 15, threatens to split the Bitcoin Cash network. The two opposing factions comprise those who want to see a developer fund implemented as part of miner rewards and those who don’t.
Bitcoin Cash Piles Into Crypto Exchanges
BCH Holders have sent an average of more than 154,000 coins per day to exchanges over the last week. Data from Chainalysis, brought to BeInCrypto’s attention by the company’s chief economist, Philip Gradwell, shows a sudden uptick in deposits.
Over 1 million Bitcoin Cash has been sent to exchanges in the last seven days ahead of the hard fork on 15 November, driving the BCH price relative to BTC even lower.
— Philip Gradwell (@philip_gradwell) November 11, 2020
As Gradwell suggests, the deposits appear to be driven by the hard fork later this month. Many companies and industry observers expect a chain split that will create two implementations.
The two potential versions are being referred to as Bitcoin Cash ABC and Bitcoin Cash Node. The former includes the change proposed to the mining reward.
BCH Holders Selling Pre-Fork?
The title of the chart in the tweet above states that Bitcoin Cash investors are selling their positions prior to the hard fork. Indeed, the asset’s price decline appears to have accelerated during this recent period of increased deposits.
Measured in bitcoin (BTC), the BCH price has been on an overall downward trend since the end of Oct. The sixth most popular digital currency by market cap now trades at about 0.0165 BTC, down from 0.019 BTC on Oct. 31.
Traders Picking Up BCH for Free Coins?
Although selling pressure currently outweighs buying in the Bitcoin Cash market, sudden rebounds in price over the last week reveal that not everyone is ready to ditch their BCH positions. Those buying ahead of the fork may be doing so in the hope of receiving coins created during the split.
Previous hard forks, like that which created Bitcoin Cash and Bitcoin SV, have presented investors with a chance to sell newly-created coins for a profit. If a coin split does indeed occur on Nov. 15, there may be a similar opportunity.