Why Bitcoin Cash Slumped 5% Over This Weekend

By Chris MacDonald | January 12, 2026, 5:59 PM

Key Points

  • The more than 5% downside move in Bitcoin Cash over this past weekend stands in contrast to its solid performance in 2025.

  • Some profit taking, along with "buy the rumor, sell the news" trading activity, appears to be driving most of this move.

  • Here's what to make of this move and what it could indicate for this token's performance into the end of this year.

Bitcoin Cash (CRYPTO: BCH) came into this year as one of the best-performing cryptocurrencies of 2025. With a return of more than 30% on the year, investors who stuck with this Bitcoin fork have done incredibly well, at least over the near term.

This also means that the bar has been set high for Bitcoin Cash as it heads into this year. So, when this top-tier cryptocurrency loses 5.2% of its value from Friday's close (as of 5:00 p.m. on Monday), investors take notice.

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Here's what appears to be behind this move, and what investors may want to make of today's intraday price action as indicative of this token's future performance (or not).

Why is Bitcoin Cash slumping right now?

Bitcoin logo on black background.

Source: Getty Images.

The first and perhaps most prominent reason I think Bitcoin Cash is selling off at the start of this year is related to its incredible performance last year. Following such a rally, and amid the market's recent volatility tied to macroeconomic concerns (mostly political and geopolitical), some price volatility can likely be expected.

Aside from that obvious narrative, I think it's essential to note that Bitcoin Cash has just undergone its second-ever halving. This halving effectively slashed block rewards to 3.125 BCH for those on the mining side.

As has been the case with other prior halving catalysts, a "buy the rumor, sell the news" sort of trading environment appears to be another key factor driving underperformance for this large-cap token. We'll have to see how long profit-takers and traders take to close out their positions, but I have to admit, this was a move I expected to see this year.

I think that heading into the end of 2026, much of the same narrative that held before Bitcoin Cash's halving (a lower circulating supply alongside broadly bullish tailwinds for transaction-oriented networks) should still be in effect. I'm of the view that this recent dip may be attractive to long-term investors, but this decision really comes down to one's investing time horizon, in my view.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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