Bitcoin Cash stumbled on Wednesday after a three-month rally, then rebounded shortly after the blockchain completed its second-ever halving, an event in which mining rewards are cut in half.

Bitcoin Cash is a blockchain network and proof-of-work cryptocurrency that was designed to be faster and cheaper to use than Bitcoin.

The first Bitcoin Cash halving took place on April 8, 2020, when miners' rewards dropped from 12.5 BCH to 6.25 BCH. Leading up to it, the price of Bitcoin Cash has increased by 147.85% over the past three months and by 24% over the past 30 days.

However, the day before the halving, the price of Bitcoin Cash fell 9.94%, falling to $572.21, according to data from CoinMarketCap. However, it quickly recovered after the halving, reaching $604, up about 5.5%.

The recent price decline resulted in liquidations totaling $3.9 million, predominantly affecting long positions worth $3.3 million, while short positions accounted for $569,540, according to CoinGlass data.

On March 29, analysts reported that open interest (OI) in Bitcoin Cash perpetual futures contracts reached an all-time high of $708.75 million. At the time of publication, OI continued its growth, increasing further to $799.23 million.

One of the large miners shared information that the hash rate has decreased after the halving. The network has currently verified 840,004 blocks, indicating that only four blocks have been verified since the halving, according to Bitcoin Unlimited.

In 2017, Bitcoin Cash split from Bitcoin due to community group disagreements over ways to increase and decrease transaction fees to accommodate growing demand.