After a 39% price hike in late July, at least 10 Bitcoin Cash whales have left the network, potentially trading or selling their millions in holdings.
According to crypto twitter user Ali Martinez, data from analytics site Santiment shows the number of investors holding between 10,000 and 100,000 Bitcoin Cash (BCH) – roughly $ 3 to $ 30 million – as of Aug. 1, has decreased by 10 has decreased. The decline comes after the token rose 38.7% from $ 224.46 on July 17 to a three-month high of $ 311.34 on July 31, meaning a number of whales could have sold their stocks.
Data from @santimentfeed shows that selling pressure behind #BitcoinCash is increasing dramatically. The company saw a significant decrease in the number of addresses ranging from $ 10,000 to $ 100,000.
About 10 whales have left the network since August 1st, a decrease of 5.6%. pic.twitter.com/uriR5j8K8q
– Ali Martinez (@satoshilatino) August 7, 2020
BCH remains the fifth largest crypto asset by market capitalization at $ 5.6 billion, while Chainlink (LINK) lags behind at $ 4.6 billion. At the time of writing, Bitcoin Cash is trading at $ 307.84 after rising 3% in the past 24 hours.
Adjustments to the BCH difficulty algorithm
Bitcoin Cash uses the SHA256D algorithm – the same as that of Bitcoin. However, its hashing power is less than 5% that of Bitcoin, which is why it is sometimes vulnerable to a 51% attack.
In response, the BCH community changed the algorithm as part of the November network upgrade. Cointelegraph reported on Aug. 7 that developers had worked out a compromise between two proposed solutions. The network will implement the adjustment of the difficulty level “Aserti3-2d” and an infrastructure financing plan proposed by the leading BCHN advisor Jonathan Toomin.