What happens after Bitcoin halving to altcoins?
Historically, post halving, the wider market has greatly outperformed BTC (3x in 2020 and over 20x in 2021). This is known as 'altcoin season'.
Altcoins like BNB, Solana, Avalanche, Polkadot, and Chainlink saw significant gains ranging from 2% to 6%. In contrast, Dogecoin, Toncoin, Shiba Inu, and Polygon faced declines of up to 1%. Edul Patel, CEO of Mudrex, said, "Bitcoin trades above the $64,000 level aftermath of the fourth halving event.
While Bitcoin Halving may create price volatility, other cryptocurrencies may perform differently during this period. Allocating a portion of your investment to other cryptocurrencies or assets can help mitigate potential losses or take advantage of alternative investment opportunities.
Halving, therefore, has historically triggered supply shocks that, in turn, have generated greater interest and speculation within the crypto community. Generally, halving seems to have triggered price increases in the past.
For instance, after the first halving, the reward for bitcoin mining dropped to 25 BTC per block. The last halving should occur in 2140. At that point, there will be 21 million BTC in circulation and no more coins will be created. From there, miners will just be paid with transaction fees.
If Bitcoin's price rises post-halving, Ethereum and other cryptocurrencies will likely experience price increases as investors diversify their portfolios.” Evans believes this may not be the wholly positive news many think it is.
Typically, Bitcoin prices continue to surge for a good few months following a halving month, rising, on average, for seven months.
Bitcoin halvings often serve as a catalyst for innovation and evolution within the broader Web3 technology stack. And for altcoins, this technological catch-up is made possible by consistent and prolonged support from the developer community.
The sudden spurt in price for Shiba Inu comes on the heels of the Bitcoin halving event. For the uninitiated, the Bitcoin halving event is scheduled to take place next month on April 20, 2024. The event will make the supply of BTC cut into half making the cryptocurrency scarcely available.
Although there is no direct relationship between halving events and altcoin performance, Bitcoin's influence and close price correlation with the broader crypto market makes halving events a significant occasion for the entire crypto industry.
Why does BTC go up after halving?
Indeed, Bitcoin experiences a halving once every four years, and the event typically raises the price of the crypto. Put simply, the decline in the hashrate pushes some miners off the task, shrinking supply and raising prices.
A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half. Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply. Bitcoin last halved on April 19, 2024, resulting in a block reward of 3.125 BTC.
As each halving event reduces the block reward by half, the supply of new bitcoins entering circulation will continue to decrease over time. This built-in mechanism is designed to ultimately lead to higher prices as demand grows while supply diminishes.
By the end of 2030, the predicted Ethereum price could soar to a peak of $26,575.21. The current price of 1 Ethereum is $ 3,149.09598386.
While Coinbase users won't experience direct changes on the platform due to the halving, they may notice increased market activity and potential price fluctuations. Coinbase, as a centralized cryptocurrency exchange, will play a role in facilitating trading during this event.
There will be many more Bitcoin halvings in the future, as they will continue until the last Bitcoin is mined. In total, there will be 32 Bitcoin halvings, which means there are 29 more halvings left to go. Bitcoin has a maximum supply of 21 million BTC, of which 19.22 million have already been mined.
Dogecoin (DOGE) is known for its strong community backing in the meme coin market, placing it among one of the top cryptos to buy in 2024. It gained attention during the 2021 bull market, especially after Elon Musk's famous tweets, reaching a high of $0.58, a massive increase of over 35,641.75%.
Solana has gained a robust outlook after the Bitcoin Halving event. Indeed, the halving ushered in new gains for the market as leading altcoins surged post-event.
Prediction: Ethereum Will Reach $10,000 in 2030 | Nasdaq.
In three previous halving cycles (in 2012, 2016, and 2020), it has skyrocketed to new all-time highs. The classic pattern is for Bitcoin to climb in value ahead of the halving, and then really take off after it.
Does Bitcoin pump after halving?
Looking back, the aftermath of each halving has been marked by significant price surges, painting a picture of Bitcoin's robust value proposition. Following the halvings in 2012, 2016, and 2020, we witnessed remarkable increases in Bitcoin's price, underscoring the event's influence on market dynamics.
Bitcoin, it found, is likely to hit an average peak price of $87,875 in 2024, with some experts predicting it will climb as high as $200,000. On the flip side, the average lowest price Bitcoin could hit by the end of 2024, is seen as $35,734, the report said, with some predicting it will fall as low as $20,000.
Bitcoin Halving Is Not Bullish
Thielen, though, contended that those bull moves were largely a result of the positive macro environment, and not driven by the halving itself. The most recent halving in May 2020, for example, came alongside massive monetary and fiscal stimuli surrounding the Covid shutdowns.
The future of altcoins is impossible to predict, but if the blockchain they were designed for continues to be used and developed, the altcoins will continue to exist.
In a research note from Needham on Apr. 16, analysts said they expect the halving to only have a modest impact to miners' estimated EBITDA margins, despite the 50% reduction in revenue, since the price of bitcoin has been trading in the range of $60,000 to $70,000.
