Altcoins
Analyst Predicts Altcoin Boom Ahead of Bitcoin Halving
ETH/BTC signals the next Altcoin boom
The Bitcoin and altcoin market has since been on a roller coaster ride over the past few months with investors looking to make gains at every opportunity, especially with the current trend of meme coins such as PEPE, AIDOGE, TURBO, etc. on.
Now, with Bitcoin halving, renowned crypto analyst Michael van de Poppe believes it is time to accumulate alternative coins.
In a tweet posted earlier today, the analyst note:
For altcoins, the time to accumulate them has come. One year before the halving -> it’s time to buy these positions. Has reached a significant level here, which is also approx. 1 year before the halving.
It’s time to extend Altcoins
Van de Poppe shared his analysis of historical data on altcoins‘market cap dominance and identified crucial areas from 2016 where the altcoin price reaction ahead of a Bitcoin halving played out according to his prediction.
According to the analyst, several altcoins can attract investments, leading to an increase in the market cap dominance of altcoins.
Notably, the Bitcoin halving is an event that occurs every 210,000 blocks mined, or approximately every four years. This is a mechanism put in place to ensure the scarcity of Bitcoin, which helps maintain its value.
When halving, the block reward is reduced by half, decreasing the supply of new Bitcoins produced. The last Bitcoin halving took place on May 11, 2020, and the next one is expected to take place between April and May 2024.
One year before the other Bitcoin halved is the ideal place to take that long position on altcoins, according to van de Poppe. Its current projection is bolstered by the crucial level of altcoin market cap dominance, which comes about a year before Bitcoin’s next halving.
This is the time when the market is experiencing a rise altcoin pricesleading to an increase in demand for these cryptocurrencies.
Although the analyst didn’t allude to which alternative coins to pocket, he later asked his nearly 657,000 Twitter followers: “Which ones are you hoarding?”
Reaction expected after Bitcoin halving
Altcoins have made significant progress in the crypto market and their dominance is growing. Over the past year we have seen the altcoin dominance like Ethereum (ETH), Binance Coin (BNB)Dogecoin (DOGE) and Cardano (ADA) are rising significantly.
According to CoinMarketCap, Bitcoin currently holds approximately 40% market dominance, while altcoins hold the remaining 60%. This is a significant change from a year ago, when The dominance of Bitcoin was close to 70%. Regardless, the altcoin market is expected to see a price surge following the Bitcoin halving.
In the past, altcoins tended to outperform Bitcoin in the year following a halving event. This is mainly because investors often look for alternative investment opportunities when the price of Bitcoin gets too high, and altcoins can be an attractive alternative.
Given Van de Poppe’s current sentiment, the coming months could be a pivotal time for investors looking to accumulate altcoins, as the Bitcoin halving is expected to take place between April and May of next year.
After the halving event, the block reward for Bitcoin miners confirming transactions on the network will decrease to 3,125 BTC.
Featured image from iStock, chart from TradingView