Bitcoin Cash (BCH) explained: the big-block fork, and what moves it
In 2017, the bitcoin community argued about one setting: how big each block should be. The side that wanted bigger blocks split off, and Bitcoin Cash was born.
At a glance
| Item | Bitcoin Cash (BCH) |
|---|---|
| What it is | A 2017 split (hard fork) of bitcoin with bigger blocks, aimed at cheap everyday payments |
| Price step | Set by each exchange, often $0.01 |
| What a move is worth | Depends on size: 0.2 BCH × a $100 move = $20 |
| Busiest hours (ET) | Roughly 8:00 am–noon weekdays, plus Asian hours |
| What moves it most | Bitcoin's direction, halvings, fork and upgrade news, exchange and fund news |
| Trading hours | 24 hours a day, 7 days a week |
What it is, briefly
Bitcoin Cash split from bitcoin on August 1, 2017. Anyone holding bitcoin then got the same amount of BCH.
The fight was about block size. A bigger block fits more payments, which keeps fees low. Bitcoin kept small blocks; Bitcoin Cash raised the limit (to 32 MB in 2018, and later to a limit that adjusts with use).
It works like bitcoin underneath: proof of work mining with the same SHA-256 method, the same 21 million coin cap, and halvings about every four years. Its latest halving was in April 2024, a few weeks before bitcoin's.
In November 2018, Bitcoin Cash itself split again. One side kept the name; the other became Bitcoin SV.
What moves it
- Bitcoin. BCH follows bitcoin's bigger direction most of the time.
- Halvings. Like bitcoin, new supply is cut in half about every four years. See Bitcoin halving.
- Upgrades. Bitcoin Cash upgrades once a year, usually in May. Changes get attention.
- Exchange and fund news. Listings, delistings and fund products can matter.
- The Fed and risk mood. FOMC at 2:00 pm ET, CPI at 8:30 am ET.
When it's busiest
Weekday hours when Europe and the US overlap, roughly 8:00 am to noon ET, usually carry the most activity. BCH has long had a strong following in Asia, so evenings ET can be active. Weekends are thinner.
Its personality
- Bitcoin's shadow. BCH often moves like bitcoin, but with bigger swings in percent.
- Sudden solo bursts. Every so often BCH jumps on its own, then usually rejoins bitcoin's path.
- Mining-power shifts. Because it shares bitcoin's mining method, miners can switch between them. Big shifts can change how fast blocks arrive.
- Long tails on thin hours.
Reading it with our method
Start with bitcoin's daily chart, then BCH's. Mark the last places price turned around on both. When they agree, the picture is clearer. When BCH runs alone, be careful: solo bursts often fade.
Only a candle body closing past a turning point counts.
Size from the stop. Example with made-up numbers: risk $30, stop $150 away. $30 ÷ $150 = 0.2 BCH. Use the position size calculator. A math example, not a promise.
Common mistakes
- Sending BTC to a BCH address (or the reverse). They look alike in places. Wrong-network sends can be lost.
- Chasing a solo spike. BCH bursts without bitcoin often reverse.
- Assuming halvings mean "up". A halving cuts new supply. It doesn't decide price.
- Sizing in coins, not risk. "0.2 BCH" means nothing until you know your stop.
Questions
Why was Bitcoin Cash created?
It split from bitcoin in August 2017 over block size. Supporters wanted bigger blocks so more payments fit in and fees stay low.
Does Bitcoin Cash have a max supply?
Yes, 21 million BCH, the same cap as bitcoin, with halvings about every four years. The latest was in April 2024.
What's the difference between Bitcoin and Bitcoin Cash?
They share history and mining method, but Bitcoin Cash uses bigger blocks for cheaper payments. They are separate coins with separate prices.
What is Bitcoin SV?
A coin that split from Bitcoin Cash in November 2018 after another disagreement about how the network should grow.
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