Altcoins
Bitcoin Halving 2024: BTC Halving Could Be the Best Gift for Altcoins
The effect of Bitcoin halving is very clear for Bitcoin, but it is difficult to predict in the case of altcoins. Satoshi Nakamotothe creator of Bitcoin, voluntarily introduced the concept of Bitcoin halved to address Bitcoin’s shortcomings in terms of inflation and demand on the network.
However, he would not have imagined the impact of the Bitcoin halving on altcoins. In this blog, let’s discuss whether the Bitcoin halving is a gift or a curse for the altcoin’s performance.
Impact of Bitcoin Halving on Altcoins
Several factors must be taken into account when analyzing the impact of the Bitcoin halving. Additionally, factors like tokenomicsMarket sentiments, token demand, community support, and USPs are key to predicting altcoin price action in post-halving situations.
Crypto Market Sentiments
Bitcoin plays an important role in determining market conditions and controlling the market. bullish And bearish state of the market. It is called Bitcoin Dominanceand from now on this is elevated to the rank of a three-year high.
Today the fear and greed index is at 55, a neutral position between the zone of greed and fear. The market has also entered a correction zone after being bullish for months.
During these bullish months, Bitcoin reached an all-time high of $73,750.07. From now on, the Bitcoin Price fell from around $61,000, causing the overall crypto market to plummet.
Based on this connection and The History of Bitcoin HalvingIt is understood that the Bitcoin halving leads to a bull run, which will eventually lift the altcoin market as well.
The crypto market and market sentiment are confident about the altcoin boom in the coming months.
Altcoin Price Movements
Altcoins like Ethereum are moving closely with the Bitcoin movement. Ethereum Price has also fallen in value, like Bitcoin, and is currently trading at $2,973.08. A similar upward trend could occur in the days following the halving, when the price of Bitcoin rises.
Looking at Ethereum’s conditions during the last halving, no major price differences occurred during the second halving in 2016. At that time, Ethereum was trading between $12 and $15, but none No significant price increase occurred during the first six months of the halving. even though Bitcoin was constantly increasing.
The third half of May 2020 was quite different from the second, as Bitcoin and Ethereum both climbed to better prices, eventually reaching their all-time highs in November 2021.
The same is true for most altcoins, including Solana. Solana has a distinct ecosystem and has a different customer base than coins. It is supposed to be independent of any other network. But looking at the charts of Bitcoin and Solana, a similar price movement is available, which cannot be denied.
Right away, Solana is in a correction zone where the price is $130.92 after facing a 35% decline in a month.
Main factors behind past halving increases
At the time of the second halving, the price of Ethereum began an upward trend after six months of Bitcoin halving. This is because of the introduction of Initial Coin Offering. So the driving force behind the rise of Ethereum was the ICO rather than halving.
Similarly, during the third Bitcoin halving of 2020, interest rates were zero due to the ongoing Covid-19. So even then, another economic force was needed to drive the price of the altcoin higher.
Is Bitcoin Halving a Gift for Altcoins?
Based on the price history of altcoins over the past halves and similar economic events in 2024, a price rise can also be anticipated in the case of altcoins. Financial factors for 2024 include Ethereum ETF, American inflationand improved crypto regulations that will play an important role in supporting the post-halving bull run.
It is also worth noting that many other factors can impact altcoin prices. As a result, the timing of this bull run may differ from previous ones.
Even from historical charts, no post-halving bullish zone occurred immediately after the Bitcoin halving. It remains to be seen how long altcoin investors will need to HODL to see the desired market.
Learn more 3 Signs of a Crypto Market Crash After Bitcoin Halving