Significant movement of Bitcoin Cash (BCH) has been observed in recent weeks, as holders transfer large volumes to exchanges. With the hard fork scheduled for November 15, over 1.56 million BCH—valued at more than $300 million—have been moved to trading platforms since the beginning of the month.
Data from blockchain analytics firms indicates that nearly $140 million in BCH was deposited into exchanges in the past week alone. This represents approximately 6.4% of the total BCH market capitalization and circulating supply entering exchange wallets in less than two weeks.
Understanding the Upcoming Bitcoin Cash Hard Fork
The hard fork is a result of disagreements within the BCH community regarding the Infrastructure Funding Proposal (IFP). This proposal, introduced by Bitcoin ABC lead developer Amaury Sechet, intended to allocate 8% of each block reward to a development fund.
In response, a group of developers and supporters formed Bitcoin Cash Node (BCHN), offering an alternative client without the IFP feature. BCHN aims to maintain the original Bitcoin Cash protocol without enforced miner contributions.
Market Sentiment and Miner Support
Miners appear to be favoring BCHN ahead of the fork. Over the past week, nodes running BCHN software mined approximately 83.6% of BCH blocks. This strong show of support suggests that BCHN is likely to emerge as the dominant chain after the split.
Futures markets also reflect confidence in BCHN. On major exchanges, BCHN futures are trading at around 0.96 BCH, while the alternative chain’s futures (BCHA) are trading near 0.047 BCH.
Price Performance and Trading Activity
Despite the significant exchange inflows, BCH's trading intensity—a metric that measures trading volume relative to transfer volume—has remained relatively stable since late October. This indicates that while more coins are being moved to exchanges, actual selling pressure may not be as severe as some analysts predicted.
In terms of price performance, BCH has largely moved sideways against the US dollar since May. However, it has recently reached new all-time lows against Bitcoin, reflecting underperformance relative to the leading cryptocurrency.
What This Means for BCH Holders
For individuals holding BCH before the fork, the process will result in two separate assets: BCHN and BCHA. Most exchanges have announced support for the fork and will credit users with both tokens based on their pre-fork BCH balance.
It is advisable for holders to keep their coins in a secure wallet where they control the private keys, or on a supporting exchange, to ensure access to both post-fork assets.
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Frequently Asked Questions
What is a hard fork?
A hard fork is a radical change to a blockchain's protocol that makes previously invalid blocks and transactions valid, or vice-versa. This requires all nodes or users to upgrade to the latest version of the protocol software. Forks often result in the creation of a new cryptocurrency.
How should I prepare for the BCH hard fork?
To receive both potential assets, hold your BCH in a wallet that supports the fork or on an exchange that has announced support for the split. Ensure you control your private keys if using a self-custody wallet.
What is the difference between BCHN and BCHA?
BCHN aims to continue the original BCH protocol without developer fund allocations, while BCHA (supported by Bitcoin ABC) includes the IFP, which diverts 8% of block rewards to a development fund.
Will the fork affect BCH’s price?
Forks often create short-term volatility due to uncertainty and trading activity. The long-term impact depends on community support, miner adoption, and market perception of each chain’s value proposition.
Can I trade both assets after the fork?
Yes, several exchanges plan to list both BCHN and BCHA for trading after the fork occurs. Users will need to check specific exchange policies for crediting and trading availability.
What happens if I send BCH during the fork?
Sending transactions during a fork can be risky due to potential chain reorganizations. It is generally recommended to avoid moving funds around the time of the fork to prevent accidental loss of funds on either chain.