Hashrate is an important aspect of crypto projects that use the Proof-of-Work (PoW) consensus mechanism. While Bitcoin (BTC) heads this regime, the hashrate of its 2017 hard fork, Bitcoin Cash (BCH), surged dramatically on July 3.

Questions arose about the cause of the spike. However, BeInCrypto could lay hands on the rationale as the price moved in the opposite direction.

New Miner Scoops Bitcoin Cash New Supply

According to CoinWarz, the hashrate jumped to 8.54 ExaHash per second (EH/s).  The last time the reading was close to this region was November 2018, when it reached 7.79 EH/s. Therefore, the new value means it has hit a new All-Time High (ATH).

Hashrate represents the computational power miners use to generate new hashes while trying to solve new blocks on the Bitcoin Cash network. The higher the hashrate, the more secure the network and the more averse the blockchain is to attacks.

Therefore, the recent spike implies that Bitcoin Cash has become healthier.  According to The Bitcoin Cash Podcast, a certain miner called “Pheonix” was responsible for the hike in hashrate. 

The podcast mentioned via X, that this miner has been accumulating all the BCH fresh supply and, in turn, adding to the hashrate. Throwing  more light on the situation, the handle noted that: 

“A miner receiving a large chunk of coins (or knowing of others who were) could be bullish on swaps to BCH (150+:1 BCH: BTC is bullish for OGs reallocating to BCH) and want to grab an extra supply.” 

Read More: 7 Best Bitcoin Cash (BCH) Wallets in 2024

Despite the rise, BCH’s price went the other way. As of this writing, BCH trades at $357.74. This is a 5.23% decrease in the last 24 hours and the lowest the coin has reached since March 14.

BCH Price Prediction: It All Depends on Bitcoin

BCH’s price decline can be attributed to Bitcoin’s plunge within the same period. This is because of the correlation between both cryptocurrencies.

According to IntoTheBlock, the correlation matrix between BTC and BCH is 0.90. Typically, the correlation matrix ranges from -1 to +1. Values closer to -1 indicate a strong divergence in prices.

However, when the correlation is close to +1, it means that the cryptos move in the same direction in many instances. This is the case with Bitcoin and its hard fork.

On June 10, the daily chart shows that BCH retested the 476.35 resistance. However, it was at this point that a bearish crossover happened. A bearish crossover, also known as a death cross, occurs when the longer EMA rises above the shorter EMA.

EMA stands for Exponential Moving Average, and it measures trend direction over a period of time. This was the case with BCH on the said date, as the 50 EMA (yellow) crossed above the 20 EMA (blue). 

Consequently, Bitcoin Cash bulls could not defend the support at $423.30. In addition, the price trades below both EMAs, indicating a further decline could be in the works.

Read More: Bitcoin Vs Bitcoin Cash: Which Is a Better Investment in 2024?

If this happens, the price of BCH could drop to $317.19, especially as most miners remain unprofitable. However, this will be invalidated if Bitcoin’s price recovers or rises above $60,000 for a start. Should this be the case, BCH may rise toward $415.19.

As Bitcoin hits a two-month low of $57,500, numerous crypto investors are strategically exiting volatile meme coins. The broader market downturn has notably affected these digital assets, known for their speculative nature, leading to significant sell-offs.

This week, some of the investors have started booking profits. Yet, they still hold a significant amount of meme coins, awaiting market recovery.

Crypto Investors Sold Pepe, Dogwifhat, and MICHI

“Dimethyltryptamine.eth,” who owns the wallet address 0x4a2, returned after 10 months of dormancy. According to Spot On Chain, this crypto whale exchanged 10 billion Pepe (PEPE) for $112,000, converting them into 32.73 Ethereum (ETH) at a rate of $0.0000112118.

Despite the market’s volatility, this investor still possesses 1.99 trillion PEPE, currently valued at $22.35 million, which represents a staggering 59,600% increase in value.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Moreover, this investor holds substantial amounts of other meme coins. Their portfolio includes 711.7 million Wojak (WOJAK) and 147.5 billion Mog Coin (MOG), with unrealized profits of $457,000 and $824,000 respectively. These figures highlight the considerable gains still possible in the fluctuating meme coin market.

In another significant movement, BxPMj transferred 900,000 Dogwifhat (WIF) tokens, valued at $1.64 million, to the centralized exchange Bybit. Despite the market’s downturn, BxPMj’s remaining holdings in WIF are estimated at $1.76 million.

Additionally, the owner of a Solana (SOL) wallet, J2GcK, sold 8.6 million michi (MICHI) for $1.34 million, realizing a profit of $1.24 million. Initially, J2GcK had invested 578 SOL, worth $103,000, to purchase these tokens between April 8 and April 15. At their peak, the MICHI tokens were valued at over $5 million, demonstrating the high volatility and potential profits in meme coin investments.

Previously, in an interview with BeInCrypto, Tristan Dickinson, the CMO of EOS Network, discussed the behavior of crypto whales.

“Whales follow market trends and capitalize where they see an opportunity. As easily as they can liquidate, putting downward pressure on the market, they can hodl if they see an opportunity,” Dickinson told BeInCrypto

Currently, the meme coin sector has declined by approximately 13% in the last 24 hours. WIF, among the top 10 meme coins, experienced the most significant drop, declining by 13.2%.

Read more: 11 Top Solana Meme Coins to Watch in July 2024

Conversely, meme coins such as Dogecoin (DOGE) and DOG•GO•TO•THE•MOON have faced less severe impacts, with reductions of 8.6% and 7.6% respectively.

BitMEX Exchange deployed its version of an S&P 500 for meme coins on Thursday, effectively becoming the second hub to offer this kind of basket index in 2024.

Meme coins continue to ascend the ranks as crypto adoption continues to grow. Meanwhile, the development comes amid a sector bloodbath, with some altcoins posting double-digit losses.

BitMEX Launches Meme Basket Index Perp

The trading platform called its MEMEMEXTUSDT contract the “S&P 500 for crypto memecoins,” margined in Tether’s USDT stablecoin with up to 25X leverage. Like the premier US stock market index, the S&P 500, which tracks the prices of large-cap US stocks, it will simultaneously track and offer exposure to the top meme coins.

 “Users can bet on the overall performance of the assets in one go, rather than holding individual tokens,” BitMEX wrote in the announcement, adding, “By trading the contract, you get exposure to the entire basket of meme coins in our Meme Basket Index, without having to hold any of the individual tokens.”

Top meme coins featuring in the basket index include Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), Dogecoin (DOGE), and Bonk Inu (BONK). Others include FLOKI, BRETT, BOME, MEME, and MOG. The weighted methodology, which is based on market share, will ensure selection on market value metrics.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

The product comes barely two months after investment firm VanEck launched its MEMECOIN Index. Christened MemeVector, VanEck’s product tracks only the first five tokens that BitMEX mentioned. The asset manager disclaimed, “Coins are intended for entertainment purposes.”

VanEck’s disclaimer came as meme coins were never taken seriously in the past. Forbes describes them as “cryptocurrencies inspired by memes and internet jokes, with little or no fundamental value.” However, some traders believe them to be a global shilling point for speculative liquidity.

“Meme coins may seem unconventional, but they highlight the power of community in crypto,” Tron founder and Huobi Global advisor Justin Sun said during Token2049.

Meme Coins Go Mainstream

Indeed, meme coins are a volatile sector with a tendency for price fluctuations as determined by market sentiment. Nevertheless, they have progressively climbed the ranks in 2024, jumpstarted by the Avalanche Foundation in December, committing to support diverse and culturally significant initiatives.

“The Avalanche Foundation intends to start using Culture Catalyst to recognize and encourage the culture and fun symbolized by meme coins by purchasing select Avalanche-based meme coins to create a collection. This move complements the Avalanche Foundation’s ongoing engagement across the Avalanche ecosystem, including NFTs, RWAs, and other types of crypto assets, broadening its portfolio to embrace a more complete spectrum of possibilities,” Avalanche wrote.

The Foundation’s commitment to invest in meme coins made the sector a bona fide cryptocurrency niche. Analysts are already predicting that this sector could lead the next altcoin season.

Read more: Best Crypto To Buy Now: Top Coins To Keep an Eye on in July 2024

Therefore, VanEck and BitMEX exchange launches are further advancing the niche. As meme coin adoption continues, more conservative investors could start approaching the scene just as Bitcoin spot ETFs (exchange-traded funds) brought BTC to Wall Street.

“Retail investors are drawn to meme coins because they offer the same opportunities as venture capitalists during seed, pre-seed, and private sale rounds,” Jonas Dovydaitis, Co-Founder & CEO at PAiT, told BeInCrypto.

Meanwhile, meme coins are dumping, with the sector’s market capitalization falling by almost 9% to $42 trillion. This is part of a market-wide crash led by Bitcoin, which is down 5% to trade for $57,459 at the time of writing.