Impact of Bitcoin halving Bitcoin It’s very clear for you. However, when it comes to altcoins, this is difficult to predict. Satoshi Nakamoto, the creator of Bitcoin, deliberately introduced the concept of Bitcoin halving to help Bitcoin’s shortcomings in terms of inflation and demand on the network.
However, Bitcoin halving altcoinHe couldn’t have imagined the impact he would have on them. So what will be the impact of Bitcoin Halving on altcoins?
Impact of Bitcoin Halving on Altcoins
To analyze the impact of Bitcoin’s halving, multiple factors need to be considered. Moreover, factors such as tokenomics, market sentiment, token demand, community support, and USPs are crucial to predict the price performance of altcoins in post-halving situations.
Crypto Market Sentiments
BTC plays an important role in determining market conditions and controlling the bullish and bearish state of the market. This is called Bitcoin Domination. As of now, this has reached its highest level in three years.
Today, the fear and greed index is at 55, which is a neutral position between the Greed and Fear zone. The market has also entered a correction zone after being bullish for months.
During these bullish months, Bitcoin rose to an all-time high of $73,750.07. As of now, Bitcoin price has fallen by approximately $61 thousand, causing the overall crypto market to decline.
Based on this connection and BTC’s halving history, it appears that Bitcoin’s halving leads to a bull run, which will eventually push the altcoin market higher as well.
The crypto market and market sentiment are confident of an altcoin boom in the next few months.
Altcoin Price Movements
Ethereum Altcoins such as Bitcoin move closely with the movement. Ethereum price also lost value similarly to Bitcoin. It is currently trading at $2,973.08. A similar volatility pattern may also occur in the days after the split, when the Bitcoin price will explode.
Looking at the conditions of Ethereum in the past halving period, there was no big difference in price during the second halving period in 2016. At that time, Ethereum was trading between $12 and $15. However, although Bitcoin constantly rose, there was no significant price increase in the first six months of the halving.
The third halving in May 2020 was quite different from the second as Bitcoin and Ethereum both rose to better prices and eventually set new all-time highs in November 2021.
The same is true for most altcoins, including Solana. Solana has a separate ecosystem and has a different mem coin clientele. It needs to be independent of any other network. However, looking at the charts of Bitcoin and Solana, there is a similar price movement that cannot be denied.
Currently, Solana is in a correction zone where the price is $130.92 after experiencing a 35% decline in a month.
Major Factors Driving Past Halving Increases
During the second halving, the Ethereum price started an upward trend six months after Bitcoin’s halving. This was due to the launch of the Initial Coin Offering. So, the driving force behind the Ethereum surge was the ICO rather than the halving.
Similarly, during the third Bitcoin halving in 2020, interest rates were zero due to the ongoing Covid-19. So even at that time, another economic force was needed to raise the altcoin price.
Is Bitcoin’s Halving a Gift to Altcoins?
Based on the price history of altcoins during past halvings and similar economic events in 2024, a price increase can also be expected when it comes to altcoins. Financial drivers for 2024 include the Ethereum ETF, US inflations, and improved crypto regulations that will play a key role in supporting the post-halving bull run.
It is also worth noting that many other factors can affect altcoin prices. As a result, the timing of this bull run may differ from previous ones.
Even looking at history charts, there has been no post-halving bull zone immediately following Bitcoin’s halving. It remains to be seen how long altcoin investors will have to HODL to see the desired market.
