Analyst Predicts Altcoins Boom Ahead of Bitcoin Halving
The Bitcoin and the altcoins market has since been on a rollercoaster ride over the last few months, with investors looking to make gains at every opportunity, especially with the current trend of the creation of meme coins such as PEPE, AIDOGE, TURBO, and so on.
Now, with the Bitcoin halving around the corner, renowned crypto analyst Michael van de Poppe believes it is time to accumulate alternative coins.
In a tweet, published earlier today, the analyst noted:
For altcoins, the time to accumulate them has come. One year before the halving -> time to buy those positions. Reached an important level here, which is also approx. 1 year before the halving.
Time To Long The 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 has gone according to his prediction.
According to the analyst, multiple alternative coins may attract investments, leading to an increase in the altcoins’ market cap dominance.
Notably, Bitcoin halving is an event that occurs every 210,000 blocks mined, which is approximately every four years. It is a mechanism put in place to ensure the scarcity of Bitcoin, which helps to maintain its value.
During the halving, the block reward is cut in half, which decreases the supply of new Bitcoins being produced. The last Bitcoin halving took place on May 11, 2020, and the next one is expected to occur between April and May 2024.
One year before the next Bitcoin halving is the perfect spot to take that buy position on altcoins, according to van de Poppe. His current projection is reinforced by the crucial level of the altcoins market cap dominance, which is approximately one year before the next Bitcoin halving.
This is the time when the market experiences a rise in altcoin prices, which leads to an increase in demand for these cryptocurrencies.
Though the analyst did not hint at which alternative coins to bag, he went ahead to further ask his nearly 657,000 Twitter followers, Which ones are you accumulating?
Expected Reaction After The Bitcoin Halving
Altcoins have been making significant strides in the crypto market, and their dominance has been on the rise. In the past year, we have seen the dominance of altcoins such as Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), and Cardano (ADA) increase significantly.
According to CoinMarketCap, Bitcoin currently holds a market dominance of around 40%, while altcoins hold the remaining 60%. This is a significant shift from a year ago when Bitcoin’s dominance was close to 70%. Regardless, the altcoins market is expected to see a surge in price following the Bitcoin halving.
In the past, altcoins have tended to outperform Bitcoin in the year following a halving event. This is mostly because investors often look for alternative investment opportunities when Bitcoin’s price becomes too high, and altcoins can provide an attractive alternative.
Viewing from Van de Poppe’s current sentiment, the coming months could be a pivotal time for investors to accumulate altcoins as the Bitcoin halving is set to occur between April and May next year.
Following 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