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Markets are digesting the Bitcoin Halving Event, leaving BTC price set for quiet months ahead according to leading analysts, and crypto retail investors are shifting to altcoins for Q2 2024.
While the Bitcoin halving event may seem like a letdown with BTC loitering around the $65,000 mark, beneath the surface, significant undercurrents are shaping the future of the entire cryptocurrency landscape.
The Bitcoin halving on April 19, 2024, came and went with a whisper, not the bang that many investors we’re hoping.
Halving events effectively reduces the rate at which new Bitcoins are generated, thereby increasing scarcity.
Historically, such scarcity has been a precursor to price appreciation, but it is not always linear or immediate.
In an interview with Forbes, market analyst Megan Stals points out that the real impact of the Bitcoin Halving event often unfolds over several months and could see prices retract before surging to new peaks.
Here’s why altcoins (and which altcoins) might steal Bitcoin’s thunder in the coming months.
What Made This Bitcoin Halving Event Weak?
The moment the clock hit 8:09 p.m. ET, the halving took its toll: Bitcoin mining rewards were halved from 6.25 to 3.125 BTC, throwing a wrench into the gears of miner earnings.
Particularly for the smaller operations the Bitcoin halving event puts them on the ropes.
Their financial salvation now depends on a bullish turn in Bitcoin’s price to recapture profits. Hint, hint.
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Stals notes that Bitcoin trading volumes tend to spike in the 60 days before a halving, driven by heightened interest and speculative momentum.
In the week before the halving, Bitcoin’s price dipped from over $67,000 to $62,000.
We’ve slipped below Bitcoin’s 20-day SMA, creating a ceiling we need to break through again. The MACD line is just under the signal line, and they’re both heading south indicating bearish momentum for Bitcoin.
Altcoin Summer 2024 is Here, Get These Ones
Many traders predict that this will be a hot summer for altcoins.
While Bitcoin Dominance is still high at 55% control over the total crypto market, post-halvings is when altcoins get their time to shine.
One small-cap altcoin to watch is eTukTuk, a comprehensive solution to reduce carbon emissions, combat CO2-related health conditions, and foster financial inclusion in developing countries.
eTukTuk just tore through the $3 million mark in its token presale, catapulting it into the spotlight as a potential heavyweight altcoin for 2024.
There’s also their Play-to-Earn game, offering players a Crazy Taxi-style adventure through Sri Lanka’s streets
Besides that, here are three altcoins that could outperform Bitcoin:
- Sui: Real Vision CEO recently called Sui the Solana of this cycle
- Rio: The RWA narrative is backed by BlackRock, and Rio is one of the biggest projects in the space
- BitTensor: The hottest token dominating the AI narrative
The Bottom Line – Altcoins Are Silver Lining for Bitcoin Halving Event
While the latest Bitcoin halving event didn’t stir immediate market upheaval, its ramifications are slowly unfolding.
The SEC’s approval of 11 spot Bitcoin ETFs in January also emerged as a potential boon, sending us into a supercycle.
So, while Bitcoin will ultimately continue to lead the market, pack your bags for altcoin summer.
RELATED: 99Bitcoins Presale Hits $600k, Signaling Massive Interest in Learn-To-Earn ($1M Next?)
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
