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Why did the price of BCH fall?

Bitcoin Cash (BCH) dropped 1.55% to $592.11 over the last 24 hours, underperforming the overall crypto market, which was nearly flat (-0.04%). Three main reasons contributed to this decline:

  1. Technical Resistance at $596 – BCH hit a key price level where sellers stepped in.
  2. Tether’s Reduced Support – Tether (USDT) is ending support for BCH’s SLP tokens, causing short-term concerns about liquidity.
  3. Market Shift – Investors are moving money away from mid-sized coins like BCH toward bigger cryptocurrencies.

Detailed Analysis

1. Technical Resistance & Profit-Taking (Negative Impact)

What happened:
BCH struggled to rise above $596.58, a price level based on a common technical tool called the Fibonacci retracement. This level also matches BCH’s 7-day average price ($592.43). The Relative Strength Index (RSI), which measures if an asset is overbought or oversold, was neutral at 55.93. After BCH’s strong 18.86% gain over the past 60 days, many traders likely decided to take profits.

Why it matters:
Failing to break above this resistance triggered automatic sell orders. Historically, BCH tends to pause or pull back after hitting these Fibonacci levels, similar to what happened in July 2025 when it dropped 10% after testing resistance (source).

What to watch:
If BCH can push above $596.58 and hold, it could restart an upward trend. But if it falls below $572, which is another key support level, losses might continue.

2. Tether’s Reduced Support for BCH SLP Tokens (Mixed Impact)

What happened:
Tether announced it will stop issuing and redeeming USDT stablecoins on the Bitcoin Cash SLP network by September 1, 2025. However, existing tokens can still be transferred (source).

Why it matters:
This change doesn’t create an immediate problem but reduces BCH’s role as a platform for stablecoins like USDT. Trading volume dropped 11.72% in 24 hours to $432 million, indicating traders are adjusting to less activity on BCH for stablecoin transfers. Still, BCH’s main use is for payments, so the long-term effect should be limited.

3. Market Rotation Away from Mid-Cap Coins (Neutral Impact)

What happened:
The Altcoin Season Index, which measures how much money is flowing into smaller cryptocurrencies, fell by 2.78% to 70. This suggests investors are shifting funds from mid-sized coins like BCH to larger ones like Bitcoin (BTC), which now holds 56.73% market dominance, and to smaller, more speculative coins.

Why it matters:
BCH’s 30-day returns were down 1.03%, lagging behind bigger altcoins like Ethereum, which gained 13.86%. This makes BCH less appealing for short-term traders. However, BCH’s 90-day gain of 29.55% shows it still has strength over longer periods.

Conclusion

Bitcoin Cash’s recent price drop is due to a combination of hitting technical resistance, reduced stablecoin support, and a broader market shift away from mid-sized cryptocurrencies. While short-term caution is understandable, BCH’s longer-term upward trend and support around $572 suggest this pullback might be temporary.

Key level to watch: Can BCH stay above its 30-day average price of $575.68? Falling below this could lead to a deeper correction toward $545.


What could affect the price of BCH?

Bitcoin Cash is at a critical point, balancing new technical improvements with challenges in gaining wider use.

  1. Smart Contract Upgrades – Planned May 2025 updates could open the door for more decentralized finance (DeFi) applications.
  2. Whale Activity – Large transactions are increasing, showing confidence but also raising the chance of price swings.
  3. Regulatory Changes – India’s new crypto reporting rules in 2027 might affect Bitcoin Cash’s growth in emerging markets.

In-Depth Look

1. Protocol Innovation (Positive Outlook)

What’s happening: In May 2025, Bitcoin Cash underwent a major upgrade called the Velma hard fork. This update improved the system’s ability to handle more complex smart contracts while keeping transaction fees very low—less than a penny. These changes make Bitcoin Cash more competitive with platforms like Ethereum, especially for DeFi projects such as decentralized stablecoins.

Why it matters: These improvements could attract more developers and increase the amount of money flowing into Bitcoin Cash. After previous upgrades, Bitcoin Cash’s price rose by 28% within three months. Keep an eye on new projects launching on Bitcoin Cash through the end of 2025 (Levex).

2. Whale-Driven Volatility (Mixed Impact)

What’s happening: On July 4, 2025, Bitcoin Cash saw $482 million in transactions from large holders, known as whales—the biggest single-day volume since February. However, the number of active users remains at a six-year low, indicating that much of this activity may be speculative rather than everyday use.

Why it matters: While big investors controlling nearly half of all Bitcoin Cash can push prices up in the short term, low overall trading activity means prices could also drop quickly. For example, between $520 and $550, there were $5.3 million in forced sell-offs in August 2025 (CoinGlass).

3. Regulatory Crosscurrents (Potential Challenges)

What’s happening: India plans to implement a Crypto Asset Reporting Framework (CARF) in 2027, which could make it harder to use Bitcoin Cash for remittances—money transfers that make up about 18% of its transaction volume.

Why it matters: Stricter rules might reduce Bitcoin Cash’s cost advantage over traditional money transfer methods. On the other hand, the U.S. Securities and Exchange Commission (SEC) clarified in July 2025 that cryptocurrencies are treated as commodities, offering clearer long-term regulatory guidance (XT.COM).

Conclusion

Bitcoin Cash’s future price depends on turning these technical upgrades into real-world use before interest from large holders fades. The $572 price level suggests there could be about 22% upside potential to $664. However, if developer activity slows down, the price might drop back to the $460 support level. The key question is whether Bitcoin Cash can use its 100 times faster transaction capacity compared to Bitcoin (BTC) to gain a bigger share of the payment market before stablecoins take over.


What are people saying about BCH?

Bitcoin Cash (BCH) is getting attention from both technical traders and industry watchers. Here’s the latest:

  1. Long-term bullish chart pattern spotted – BCH shows signs of a big price move ahead
  2. Grayscale files for BCH ETF – Institutional interest is growing, but approval timing is uncertain
  3. Developers prepare for conference talk – New smart contract features could boost BCH’s use
  4. Tether ends BCH support – Some liquidity concerns arise for specific BCH projects

In-Depth Look

1. Macro breakout brewing (bullish)

Crypto analyst @ColinTCrypto points out that BCH has broken out of a 7-year wedge pattern against both Bitcoin (BTC) and the US dollar. This kind of long-term chart pattern often signals a strong price move. If BCH can break above $607 (current resistance is $572), it might trigger automated buying by trading algorithms, potentially pushing prices higher in 2025.

2. ETF race heats up (neutral)

Grayscale, a major investment firm, has added Bitcoin Cash to its list of cryptocurrencies for potential exchange-traded funds (ETFs), alongside others like HBAR and LTC. This is notable because BCH is the first Bitcoin fork being considered for a spot ETF. However, the U.S. Securities and Exchange Commission (SEC) has yet to approve it, so the impact remains uncertain. If approved, it could bring more institutional money into BCH, but BCH’s market size ($11.7 billion) is much smaller than Bitcoin’s ($2 trillion), so the immediate effect may be limited.

3. Developers push programmable money (bullish)

The team behind CashTokens is upgrading smart contract capabilities on BCH through a tool called CashScript. These upgrades aim to enable decentralized finance (DeFi)-style applications, similar to what Ethereum offers. A keynote presentation at the upcoming ECC conference in Barcelona could spark more developer interest. While BCH currently processes about 50,000 transactions daily—far less than Ethereum’s 1.2 million—these improvements could help BCH carve out a niche in payment-focused apps over time.

4. Tether drops BCH SLP support (bearish)

Tether (USDT), a popular stablecoin, is ending its support for BCH’s Simple Ledger Protocol (SLP) chain as of September 1. This affects about $3.2 million in frozen assets and represents roughly 18% of activity on the SLP chain. Projects like MistSwap that rely on BCH-based stablecoins will need to switch to alternatives. This development is a setback for BCH’s smaller DeFi ecosystem.

Conclusion

The outlook for Bitcoin Cash is mixed. Technical traders see potential for the price to double or triple if BCH breaks above $572. However, the loss of stablecoin support and other fundamental challenges could slow growth. Watch the $520 support level closely—if BCH closes below that on a weekly basis, it could break the upward trend that has driven a 28% gain over the past 90 days. For developers and users, the October ECC conference will be an important event to see if BCH’s technical upgrades lead to real-world adoption beyond just price speculation.


What is the latest news about BCH?

Bitcoin Cash is holding steady near $590 amid growing institutional interest and changes in its ecosystem. Here are the key updates:

  1. Grayscale Files for BCH ETF (September 10, 2025) – A major step as Grayscale applies to launch a Bitcoin Cash spot ETF, signaling strong institutional interest.
  2. Tether Ends USDT Support on BCH SLP (August 29, 2025) – Tether stops issuing and redeeming USDT on Bitcoin Cash’s Simple Ledger Protocol but doesn’t freeze user assets.
  3. CoinEx Lowers BCH Borrowing Rates (September 5, 2025) – Margin trading costs for BCH are cut in half, making it more affordable for traders.

Deep Dive

1. Grayscale Files for BCH ETF (September 10, 2025)

What happened:
Grayscale Investments filed applications with the SEC to launch spot ETFs for Bitcoin Cash, Litecoin, and Hedera. This is the first time a major institution has sought to create a regulated investment product specifically for BCH.

Why it matters:
If approved, this ETF could bring more institutional money into Bitcoin Cash, improving liquidity and market stability. However, the SEC has a history of delaying or rejecting crypto ETF proposals, so approval is not guaranteed. (BTCHaber)

2. Tether Ends USDT Support on BCH SLP (August 29, 2025)

What happened:
Tether stopped issuing and redeeming its USDT stablecoin on Bitcoin Cash’s Simple Ledger Protocol (SLP). While they initially planned to freeze smart contracts on this network, they reversed that decision, allowing users to continue transferring funds.

Why it matters:
This change is mostly neutral for Bitcoin Cash. It reduces the use of USDT on BCH’s SLP network, which may slow some specific use cases. However, BCH’s main role as a payment network remains unaffected, and developers can still build on the protocol without Tether’s direct involvement. (MEXC News)

3. CoinEx Lowers BCH Borrowing Rates (September 5, 2025)

What happened:
CoinEx reduced the daily margin borrowing rate for BCH from 0.1% to 0.05% for its VIP 0 users. This brings BCH borrowing costs closer to those for Bitcoin (0.03%) and Ethereum (0.05%).

Why it matters:
Lower borrowing costs make it cheaper for traders to take leveraged positions in BCH, which could increase trading activity. However, this move might be more about staying competitive with other exchanges than a sign of growing demand. (CoinEx)

Conclusion

Bitcoin Cash is navigating a mix of institutional interest and ecosystem changes. Grayscale’s ETF application could open the door to more investment, while Tether’s shift and CoinEx’s rate cuts reflect ongoing adjustments in the network’s use and trading environment. The big question remains: will these developments boost BCH’s liquidity and market presence, or will Bitcoin continue to dominate the space?


What is expected in the development of BCH?

Bitcoin Cash is moving forward with several key upgrades:

  1. OP_EVAL Implementation (2026) – This will allow more advanced smart contracts and decentralized apps.
  2. Loop Constructs (2026) – Adds the ability for smart contracts to repeat actions automatically.
  3. Pay-to-Script Upgrades (2026–2027) – Improves flexibility for complex transactions like multi-signature wallets.
  4. Block Time Reduction Proposal (TBD) – A possible change to speed up transactions by shortening block times from 10 minutes to 2 minutes.

Deep Dive

1. OP_EVAL Implementation (2026)

What it is:
OP_EVAL is a new feature that will make Bitcoin Cash’s scripting language more powerful, enabling what’s called Turing-complete smart contracts. Simply put, this means developers can create more complex decentralized applications (dApps) such as decentralized exchanges or lending platforms directly on the Bitcoin Cash network. This upgrade builds on improvements made in 2025 related to virtual machine limits and big number handling (Levex).

Why it matters:
This opens up Bitcoin Cash beyond just sending money—it could become a platform for decentralized finance (DeFi) applications. That could attract more developers and users, increasing the network’s value. However, there’s a risk if BCH doesn’t keep up with other platforms like Ethereum or Solana that already have strong developer communities.

2. Loop Constructs (2026)

What it is:
Loop constructs will let smart contracts perform repeated tasks automatically, such as sending multiple payments or running trading algorithms. This makes contract programming simpler and more efficient.

Why it matters:
This upgrade makes it easier for developers to build useful applications, which could lower transaction costs for users. It’s a positive step but depends on how many developers start using these features.

3. Pay-to-Script Upgrades (2026–2027)

What it is:
These improvements will enhance Bitcoin Cash’s Pay-to-Script-Hash (P2SH) system, allowing for more advanced transaction types like multi-signature wallets (which require multiple approvals) and time-locked transactions (which only execute after a certain time).

Why it matters:
This makes Bitcoin Cash more attractive for businesses and institutions that need secure and flexible ways to manage funds. However, delays or competition from other solutions could affect adoption.

4. Block Time Reduction Proposal (TBD)

What it is:
There’s a proposal to reduce the time it takes to add a new block to the blockchain from 10 minutes down to 2 minutes. This would speed up transaction confirmations, making Bitcoin Cash more competitive with payment networks like Visa (BTCC).

Why it matters:
Faster transactions could encourage more everyday use by shoppers and merchants. But this change is still being reviewed because it could affect network security and miner incentives, and it requires agreement from the community.

Conclusion

Bitcoin Cash’s upcoming upgrades aim to make it a more versatile and efficient platform for programmable money, offering a lower-cost alternative to Ethereum. While these technical improvements are promising, their success depends on attracting developers and users. As competition among blockchain platforms grows, BCH will need to clearly show how it stands out.


What updates are there in the BCH code base?

Bitcoin Cash’s 2025 network upgrade improves smart contract capabilities and makes running nodes more efficient.

  1. VM Limits & BigInt Upgrade (May 2025) – Increases smart contract power and cuts node processing time.
  2. Knuth Node v0.68.0 (July 2025) – Combines code for easier maintenance and prepares for future improvements in transaction handling.

Deep Dive

1. VM Limits & BigInt Upgrade (May 2025)

Overview: On May 15, 2025, Bitcoin Cash activated two key updates: VM Limits (CHIP-2021-05) and BigInt (CHIP-2024-07). These changes make Bitcoin Cash a stronger platform for decentralized finance (DeFi) and more complex applications.

What this means: This upgrade is positive for Bitcoin Cash because it opens the door to advanced DeFi projects like decentralized stablecoins and cross-chain bridges, all while keeping transaction fees very low and confirmation times fast. Developers can now create more complex applications without needing workarounds.
(Source)

2. Knuth Node v0.68.0 (July 2025)

Overview: Released on July 5, 2025, this update unified Bitcoin Cash’s node software codebase and set the stage for future improvements in how transactions are processed.

What this means: This update is more behind-the-scenes but important. It helps ensure the network remains stable and efficient over time, which is key for businesses and developers who rely on Bitcoin Cash.
(Source)

Conclusion

Bitcoin Cash’s 2025 upgrades position it as a scalable smart contract platform that balances everyday payment use with growing DeFi capabilities. The VM Limits and BigInt improvements already enable more advanced applications, while backend updates like Knuth v0.68.0 help future-proof the network.

Watch: Will Bitcoin Cash continue to attract developer interest after these upgrades? Can it draw developers from platforms like Ethereum and Solana looking for lower fees?