Why did the price of BCH fall?
Bitcoin Cash (BCH) dropped 3.14% in the last 24 hours, underperforming the overall crypto market, which fell 2.34%. Three main reasons behind this decline:
- Market-wide pullback – A general cautious mood in crypto markets pushed BCH down.
- Technical breakdown – BCH fell below important price levels, triggering more selling.
- Shift to Ethereum (ETH) – Investors moved money into ether ETFs, with $170 million flowing in compared to outflows from Bitcoin ETFs.
In-Depth Analysis
1. Market-Wide Caution (Negative Impact)
Overview:
The total value of all cryptocurrencies dropped 2.34% to $3.69 trillion. Bitcoin’s share of the market increased to 58.91% as investors pulled money out of alternative coins like BCH. The Fear & Greed Index, which measures market sentiment, showed “Fear” at 28 out of 100, indicating investors are cautious after recent market volatility caused by tariff news.
What this means:
Bitcoin Cash is known to be more volatile than Bitcoin, often moving more sharply in response to market changes. Its price tends to follow Bitcoin closely, with a strong 30-day correlation of 0.89. Since Bitcoin fell 9.2% over the past week, BCH faced additional downward pressure.
2. Technical Breakdown (Negative Impact)
Overview:
BCH’s price dropped below its 30-day simple moving average (SMA) of $566.98 and a key pivot point at $511.92. The Relative Strength Index (RSI) is at 36.71, which is neutral but trending lower, and the MACD indicator shows bearish momentum.
What this means:
Traders sold after BCH fell below a critical support level around $515.55, as noted in recent market analysis (CCN). Using Fibonacci retracement, the next support level is near $480.
What to watch:
If BCH closes below $500, it could trigger automatic selling by trading algorithms, since $500 is a key psychological price point.
3. ETF Rotation Pressure (Mixed Impact)
Overview:
On October 16, Bitcoin ETFs saw $104 million in outflows, while ether ETFs attracted $170 million in inflows (Bitcoin.com). Grayscale’s application for a BCH ETF, expected in September 2025, hasn’t yet influenced this trend.
What this means:
Investors are currently favoring Ethereum because of its staking rewards and Layer-2 scaling solutions, rather than BCH’s focus on payments. BCH’s 24-hour trading volume ratio is 3.88%, lower than ETH’s 5.71%, indicating less liquidity and trading activity.
Conclusion
Bitcoin Cash’s recent drop is due to overall market caution, technical price breakdowns, and competition from Ethereum’s growing appeal. While BCH might bounce back from oversold conditions, the $500 level has shifted from support to resistance.
Key point to watch: Can BCH stay above its 200-day exponential moving average (EMA) at $508.35 during today’s U.S. trading session? If not, it could retest July’s lows near $473.
What could affect the price of BCH?
Bitcoin Cash is currently balancing between important technical upgrades and challenges in the market.
- ETF Speculation – Grayscale has applied for a Bitcoin Cash ETF, which could boost demand if approved.
- Network Upgrades – The Velma hard fork adds smart contract features, but it’s unclear how many developers will use them.
- Whale Activity – Large Bitcoin Cash transactions reached $481 million in July 2025, signaling possible price swings.
Deep Dive
1. Grayscale ETF Application & Regulatory Environment (Positive Outlook)
Overview: On September 10, 2025, Grayscale filed for a Bitcoin Cash ETF (Coinspeaker). This move is similar to what happened with Bitcoin ETFs, which brought more liquidity and interest from big investors. While approval by the U.S. Securities and Exchange Commission (SEC) isn’t guaranteed and delays are likely, an approved ETF could open the door for more institutional money to flow into Bitcoin Cash.
What this means: If approved, Bitcoin Cash could see increased investment from traditional finance sources. For example, BlackRock’s Bitcoin ETF (IBIT) attracted $2.63 billion in just one week (news.bitcoin.com). On the other hand, if the ETF is rejected or delayed, Bitcoin Cash’s price might drop by 15-20%, potentially falling to around $430.
2. Velma Upgrade & Smart Contract Development (Mixed Outlook)
Overview: In May 2025, Bitcoin Cash underwent the Velma hard fork, which introduced new features like VM Limits and BigInt. These upgrades allow Bitcoin Cash to support decentralized finance (DeFi) applications (Levex). However, Bitcoin Cash still lags behind other blockchains like Ethereum and Solana in terms of developer activity and app creation.
What this means: While these upgrades improve Bitcoin Cash’s capabilities, the real benefit depends on whether developers build useful apps on the network. If not enough projects take off, Bitcoin Cash may remain primarily a low-cost payment option, limiting its price growth to below $600.
3. Whale Transactions & Market Sentiment (Volatile Outlook)
Overview: Large Bitcoin Cash transactions, often called “whale moves,” jumped 122% to $481 million on July 4, 2025 (U.Today). At the same time, the number of active users on the network hit a six-year low, which could indicate speculative trading rather than broad adoption.
What this means: Big investors buying Bitcoin Cash can push prices up quickly, as seen with a 20% price increase to $570 in July. However, low participation from everyday users means there’s a risk these whales could sell off their holdings suddenly, causing sharp price drops. Watch the $507 price level closely—if it falls below this, selling pressure may increase.
Conclusion
Bitcoin Cash’s future depends largely on whether the ETF gets approved and if the recent upgrades lead to real-world use. For now, the price is likely to stay between $480 and $572. To regain strong upward momentum, Bitcoin Cash needs to break above $600. The big question remains: will the Velma upgrade’s new DeFi features attract enough developers to make holding Bitcoin Cash worthwhile despite ongoing market uncertainties?
What are people saying about BCH?
Bitcoin Cash (BCH) conversations are swinging between hopes for a price breakout and concerns about resistance levels. Here’s what’s trending right now:
- Bulls are betting on a breakout above $600 based on positive technical signals
- Long-term chart patterns suggest potential for significant gains
- On-chain data shows signs of speculative activity, which could be risky
Deep Dive
1. @ColinTCrypto: BCH/BTC & USD charts look ready for a strong move 🚀 bullish
"BCH/BTC has likely hit a bottom… BCH/USD’s 7-year wedge breakout could lead to a sharp price increase"
– @ColinTCrypto (X followers · June 28, 2025, 12:11 AM UTC)
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What this means: This is a positive sign for Bitcoin Cash. Its strength compared to Bitcoin (BTC) and long-term technical patterns suggest BCH could outperform major cryptocurrencies soon.
2. CoinMarketCap Analysis: $572 resistance is a key test 🛑 mixed signals
"Price is holding within an upward channel, but falling below $520 would weaken the bullish outlook"
– CMC Community Post (August 7, 2025, 3:12 PM UTC)
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What this means: The short-term outlook is uncertain. BCH needs to stay above $520 to keep bullish momentum alive. Breaking above $572 with strong trading volume could push the price toward $664.
3. NewsBTC Report: Whale activity hides weak fundamentals ⚖️ bearish
"Social media hype spikes often come before a 6.7% price drop… daily active BCH addresses are at a 6-year low"
– NewsBTC (September 20, 2025, 1:00 AM UTC)
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What this means: This is a warning sign. Price increases are being driven more by speculation and hype than by actual network use, which could lead to a price correction if sentiment changes.
Conclusion
The overall outlook for Bitcoin Cash is cautiously optimistic from a technical perspective but cautious due to weak fundamentals. Long-term chart patterns and upward price channels support positive expectations, but slow adoption and volatility caused by large holders (whales) require careful attention. Keep an eye on the $572 weekly close—breaking above this level could trigger a rush of buying (FOMO), while failure to do so might push the price back toward the $450–$480 support zone.
What is the latest news about BCH?
Bitcoin Cash is navigating changes in regulations and market trends with some positive momentum. Here are the key updates:
- Roger Ver Settles Tax Case (October 14, 2025) – Roger Ver agreed to a $49.9 million deal with the U.S. Department of Justice (DOJ) to resolve charges related to unreported cryptocurrency holdings.
- BCH Price Recovers to $540 After Dip (October 13, 2025) – Technical signals and blockchain activity suggest Bitcoin Cash is bouncing back after a recent drop.
- Grayscale Files for Bitcoin Cash ETF (September 10, 2025) – Grayscale has applied to the SEC to launch an ETF for BCH, reflecting growing interest from institutional investors in altcoin ETFs.
In-Depth Look
1. Roger Ver Settles Tax Case (October 14, 2025)
Summary:
Roger Ver, co-founder of Bitcoin Cash, reached an agreement with the U.S. Department of Justice to settle charges of tax evasion and mail fraud from 2024. He will pay $48 million in back taxes and penalties, avoiding jail time. This case relates to his 2014 move abroad and alleged hiding of Bitcoin assets.
Why it matters:
This settlement clears a major legal issue for Bitcoin Cash and fits with a broader trend of more lenient crypto regulations under the Trump administration. However, Ver stepping back from public roles could affect how actively BCH is promoted. (Coinspeaker)
2. BCH Price Recovers to $540 After Dip (October 13, 2025)
Summary:
Bitcoin Cash’s price bounced back to $540 after briefly falling below $500 during a market-wide selloff caused by U.S.-China trade tensions. On-chain data showed a rise in active users to 7.28 million. Technical indicators like a falling wedge breakout and bullish momentum suggest renewed buying interest.
Why it matters:
This recovery shows BCH’s price is sensitive to overall market conditions. For the price to keep rising, it needs to stay above $515 support, with $583 as the next target resistance level. (CCN)
3. Grayscale Files for Bitcoin Cash ETF (September 10, 2025)
Summary:
Grayscale has filed applications with the SEC to launch spot ETFs for Bitcoin Cash, Hedera Hashgraph (HBAR), and Litecoin (LTC). This follows the SEC’s approval of Ethereum ETFs earlier in 2025 and shows growing institutional interest in altcoin investment products.
Why it matters:
While it’s unclear when or if these ETFs will be approved, the filings highlight BCH’s strong liquidity and could bring more investment in 2026. However, competition from ETFs for coins like Solana and Dogecoin might split investor attention. (BTCHabercom)
Conclusion
Bitcoin Cash is balancing clearer regulatory conditions (thanks to Roger Ver’s settlement), technical strength, and growing institutional interest through ETF filings, all amid ongoing market volatility. With a turnover rate of 3.89% and market dominance at 0.274%, BCH remains a mid-sized player focused on improving payment scalability. The big question is whether regulatory support can help BCH overcome its dependence on retail investor momentum.
What is expected in the development of BCH?
Bitcoin Cash is moving forward with some important updates:
- Faster Block Times (Q1 2026) – Plans to shorten block times from 10 minutes to 2 minutes.
- Smarter Contracts (2026–2027) – Adding new features like loops to make smart contracts more powerful.
- Developer Funding Plan (TBD) – Considering bringing back a plan to fund developers directly through the network.
In-Depth Look
1. Faster Block Times (Q1 2026)
What’s happening?
Bitcoin Cash wants to speed up how often new blocks are created—from every 10 minutes down to every 2 minutes. This means transactions can be confirmed faster, making the network more user-friendly. This update builds on improvements made in May 2025 that enhanced smart contract capabilities (Levex).
Why it matters:
Faster blocks could make Bitcoin Cash more attractive for payment apps that need quick confirmations. However, there’s a risk that shorter times might make mining harder for some, possibly leading to fewer miners and more centralization.
2. Smarter Contracts (2026–2027)
What’s happening?
Developers plan to add new features like OP_EVAL and loops, which allow more complex smart contracts. These upgrades aim to make Bitcoin Cash more flexible, similar to Ethereum, but while keeping transaction fees low (Levex).
Why it matters:
This could open the door to more decentralized finance (DeFi) applications on Bitcoin Cash, potentially increasing its use and value. Still, there are challenges, including competition from Ethereum’s second-layer solutions and the technical risks of implementing these features.
3. Developer Funding Plan (TBD)
What’s happening?
The Infrastructure Funding Plan (IFP) is a proposal to allocate some block rewards to developers to support ongoing work. It was controversial in 2020 and removed but is now being reconsidered (GitLab).
Why it matters:
If brought back without broad agreement, it could cause divisions in the community. On the other hand, a well-structured funding plan could help ensure steady development and improvements over time.
Conclusion
Bitcoin Cash’s upcoming updates aim to make the network faster and smarter, while also addressing how development is funded. These changes could help BCH stand out as a hybrid solution for payments and DeFi. However, success depends on careful execution and how well it competes with other networks like Solana and the Lightning Network. Will faster block times give Bitcoin Cash the edge it needs?
What updates are there in the BCH code base?
Bitcoin Cash’s 2025 upgrades expanded its smart contract capabilities and improved overall performance.
- VM Limits & BigInt (May 2025) – Boosted computing power for more complex contracts by 100 times.
- Node Efficiency Boost (July 2025) – Made block processing 50% faster and enabled parallel downloads.
- CashTokens Ecosystem (August 2025) – Introduced new tools to help developers create tokenized assets.
Deep Dive
1. VM Limits & BigInt (May 2025)
Overview: In May 2025, Bitcoin Cash removed limits on how scripts run and added support for high-precision math. This upgrade helps improve decentralized finance (DeFi) applications and makes it easier to work across different blockchains.
Specifically, the VM Limits update increased the allowed script size from 520 bytes to 10,000 bytes and removed the cap on the number of operations a script can perform. The BigInt upgrade expanded the ability to handle very large numbers, which is important for secure cryptographic calculations and financial models. Both updates work smoothly with existing systems.
What this means: This is a positive development for Bitcoin Cash because it allows more advanced DeFi projects, like decentralized stablecoins, to run on its network. It also positions Bitcoin Cash as a cost-effective alternative to Ethereum for smart contracts. (Source)
2. Node Efficiency Boost (July 2025)
Overview: The July 2025 update to Bitcoin Cash Node (version 28.0.1) made the network faster and more efficient. Block propagation—the way new blocks are shared across the network—was optimized, cutting the worst-case processing time in half.
Improvements included downloading blocks in parallel and better peer-to-peer communication. The getpeerinfo command now tracks peers with high bandwidth, which helps the network respond more quickly.
What this means: Users experience faster syncing and lower resource use, making it easier for more people to run Bitcoin Cash nodes. This strengthens the network’s reliability and is a positive step overall. (Source)
3. CashTokens Ecosystem (August 2025)
Overview: At the Electronic Cash Conference 2025, developer Mathieu Geukens presented upgrades to CashScript, the programming language for Bitcoin Cash smart contracts. These upgrades focus on better wallet integration and software development kits (SDKs).
The Cashonize wallet and CashScript now support features like atomic swaps (secure token exchanges) and token issuance, which work hand-in-hand with the VM and BigInt upgrades. Early projects such as Future Bitcoin Cash (FBCH) are already using these tools to create tokenized assets.
What this means: This is a strong positive for Bitcoin Cash adoption. Easier token creation can attract developers and businesses looking for affordable and scalable blockchain solutions. (Source)
Conclusion
Bitcoin Cash’s 2025 updates strengthen its position as a scalable platform for smart contracts. The VM and BigInt improvements, along with new CashTokens tools, lay the groundwork for DeFi growth. Meanwhile, node efficiency upgrades make the network more user-friendly. Looking ahead, proposals like OP_EVAL planned for 2026 will test how Bitcoin Cash balances innovation with its core focus on fast, low-cost payments.