Altcoin
Why Investors Must Turn to Altcoins
The cryptocurrency market, particularly Bitcoin, undergoes a transformative phase every four years known as the “halving,” where the rewards for mining are halved, significantly affecting the influx of new BTC.
This anticipated event reduces the supply, traditionally escalating Bitcoin’s price due to its increased scarcity. As the 2024 halving takes place, industry leaders shares crucial insights. They highlight the impact this event has on trading strategies and the broader investment landscape.
Immediate Effects Post-Halving
John Patrick Mullin, CEO of real-world assets (RWA) Layer 1 blockchain MANTRA, told BeInCrypto about the immediate effects of the Bitcoin halving. He predicts increased market volatility due to the sudden reduction in block rewards.
“After a halving, short-term traders should be prepared for increased volatility. The reduced block reward can lead to immediate market reactions, and traders should watch for potential price swings to capitalize on quick profits or mitigate losses,” Mullin explained.
This period of fluctuation presents opportunities and risks, requiring investors to be highly vigilant and responsive to market signals.
Mullin notes the importance of monitoring the hash rate and miner activity after the halving. A decrease in hash rate following a halving could signal miner capitulation, which may precipitate a short-term decline in Bitcoin’s price. This scenario offers strategic entry points for investors or could serve as a cautionary signal to delay further investments.
While the halving stirs considerable activity and speculation among short-term traders, Mullin advocates a different approach for long-term investors. He suggests that they “might consider holding or gradually accumulating more Bitcoin,” focusing on the enduring potential for price appreciation as the newly constrained supply of Bitcoin interacts with steady or increasing demand.
Likewise, Nash Lee, co-founder of decentralized exchange (DEX) MerlinSwap, believes that long-term investors should look beyond immediate fluctuations, anticipating the substantial price gains that have historically followed halving events.
“The decrease in Bitcoin’s supply may lead to price increases, prompting a long-term consideration of increasing Bitcoin holdings. Compared to other altcoins, Bitcoin exhibits less price volatility, coupled with bullish news such as the spot Bitcoin exchange-traded funds (ETFs) this year, making it advisable to consider increasing BTC holdings relative to other assets,” Lee told BeInCrypto.
Looking back at historical data surrounding supply and price dynamics during previous Bitcoin halving events provides valuable context.
In the first halving event on November 28, 2012, Bitcoin’s price was $12, surging to a peak of $1,242, a staggering 9,937% increase. Similarly, the second halving event on July 16, 2016, saw the price at $664, eventually reaching a peak of $19,804, marking a 2,903% increase. The most recent halving on May 11, 2020, witnessed a price of $8,571, with the subsequent peak hitting $68,997, an 705% increase.
Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024
According to Kristian Haralampiev, Products Lead at crypto platform Nexo, these historical trends demonstrate the potential for significant price appreciation following halving events.
“Bitcoin’s deflationary nature, highlighted by the reduction in newly issued supply during halving events, enhances its appeal as a hedge against global inflation. This characteristic solidifies its status as a desirable asset, particularly during times of economic uncertainty. Consequently, attention intensifies around halving events, further bolstering Bitcoin’s reputation as a store of value,” Haralampiev said in an interview with BeInCrypto.
When Altcoin Season Starts
The discussion extends beyond Bitcoin. Mullin points out that post-halving, the cryptocurrency market often sees a shift where investor focus broadens to include altcoins.
“The increased attention and capital flow into the market can lead to a so-called ‘altcoin season,’ where altcoins experience significant price increases after Bitcoin’s initial surge. Once the hype around the Bitcoin halving fades, investors might look to diversify. This strategy should be approached particularly if investors search for ‘the next big thing’ following Bitcoin’ bull run’s rally,” Mullin affirmed.
This broadened perspective is crucial as the market adapts and recalibrates following the halving. Historically, as Bitcoin’s price stabilizes after its initial post-halving surge, altcoins begin to attract attention.
Indeed, a parabolic altcoin season usually unfolds when Bitcoin’s price stabilizes after its initial post-halving surge, prompting investors to seek higher returns. If Bitcoin’s price significantly increases and its market dominance rises, a subsequent reversal in this dominance could lead investors to start taking profits and reallocating funds to altcoins.
This pattern was observed after the 2020 halving when Bitcoin’s dominance peaked at 73%. Should similar trends recur in 2024, a shift from Bitcoin to altcoins might be expected.
Read more: Which Are the Best Altcoins To Invest in April 2024?
Investors contemplating such moves should meticulously evaluate altcoins based on their use cases, technological foundations, development teams, community support, and market positions. Additionally, monitoring market sentiments and trends is crucial, as altcoins tend to rally when the market is bullish about new technologies or projects.
However, due to their higher volatility and risk compared to Bitcoin, investors must carefully assess their risk tolerance and consider diversifying their portfolios to effectively manage these risks. Lee maintains that conducting comprehensive research is essential to mitigate the risks of succumbing to fear of missing out (FOMO) and investing in lesser-known altcoins, which could carry significant risks.
“After the Bitcoin halving, some people believe that altcoins offer more attractive investment opportunities. However, altcoins are known for their higher volatility compared to Bitcoin, requiring careful evaluation. It’s essential to thoroughly research the projects and backgrounds to ensure understanding of the investment’s value and potential returns,” Lee emphasized.
Looking ahead, the implications of the halving extend into the broader financial ecosystem. The insights from Mullin, Haralampiev, and Lee suggest that the halving reinforces Bitcoin’s status as the leading cryptocurrency. It also acts as a catalyst for increased market dominance and subsequent investment shifts into altcoins.
These dynamics underline the importance of a well-rounded investment strategy that accommodates the immediate impacts of the Bitcoin halving and its longer-term effects on market behavior and investor sentiment.
Disclaimer
Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
XRP price has recently witnessed a notable uptick, hitting its highest level since early October. The cryptocurrency, currently trading above the key support level of $0.52, is testing resistance near $0.56. This increase has raised questions about whether XRP could rally further, potentially reaching the $1 mark.
XRP Price Eyes $1 as Momentum Builds, Can Bulls Break Resistance?
XRP price hit a monthly high of $0.578, its peak since early October. This price surge has been boosted by strong investor interest, reflecting broader optimism across the crypto market. More so XRP price is now testing a critical resistance level at $0.56, which, if surpassed, could pave the way for a rally toward $0.60 or even higher.
However, caution remains as technical indicators suggest potential resistance ahead. An impending “death cross” formation, with the 50-day moving average closing in on the 200-day moving average, may indicate a bearish shift if realized. This pattern has historically preceded downward trends in XRP prices.
Additionally, XRP price is supported by positive momentum signals. The Moving Average Convergence Divergence (MACD) indicator shows the MACD line above the signal line, suggesting sustained buying interest. This bullish crossover, coupled with positive histogram bars, indicates that momentum remains on the upside.
If the MACD line continues above the signal line, XRP price could maintain its upward trajectory, potentially moving closer to the $1 mark.
Meanwhile, the Relative Strength Index (RSI) for XRP sits at around 67, nearing the overbought zone. While this suggests that XRP price has been experiencing strong buying pressure, it also indicates the possibility of a short-term consolidation. A further increase in RSI beyond 70 could trigger a price correction, as overbought conditions often precede pullbacks.
Speculation on SEC Chair’s Removal Fuels Optimism for Ripple
Consequently, market analyst Ben “BitBoy” Armstrong has speculated that Ripple and XRP may benefit if SEC Chair Gary Gensler is removed from office. With recent political shifts in the United States, some believe that a change in SEC leadership could lead to regulatory leniency for Ripple and other crypto firms. BitBoy suggests that such a move could attract capital into XRP, further driving its value upward.
Adding to this speculation, Ripple’s CEO recently echoed similar sentiments, advocating for new leadership at the SEC. While no official announcements have been made regarding potential changes, the market remains optimistic about the possible impact on price. Moreover, Brad Garlinghouse suggested that Gary Gensler is accountable for Democrats’ election performance.
At press time, XRP price is $0.55, reflecting a 3% increase in the past 24 hours with a market cap of $31.68 billion. Should the Ripple token manage to break and hold above this level, it could set the stage for a rally toward the $1 milestone. However, a failure to overcome this resistance may result in a pullback to the $0.52 support.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In the vibrant realm of cryptocurrency, some projects shine brightly for their innovation and potential for remarkable returns. Among them, ETFSwap (ETFS) is creating a buzz with its audacious target of a 37,000% surge by 2025, prompting investors to compare it to established tokens like the Cardano price, the Dogecoin price, and the XRP price, as its unique features could revolutionise investment strategies.
ETFSwap (ETFS): Set To Surpass Competitors With 37,000% Growth Potential
ETFSwap (ETFS) is currently in its bonus round of the presale, and the excitement surrounding this phase is palpable. With a focus on market making and efficient trading, ETFSwap (ETFS) allows users to engage in trading activities without the limitations of expiration dates. The platform offers position sizes of up to 50x, enabling traders to maximize their potential gain, whether they are going long or short.
Among the features that set ETFSwap (ETFS) apart is its commitment to security and privacy. By employing zero-knowledge (ZK) proof technology, it enables transactions to remain confidential. This level of transparency is critical for building trust among investors. Also, the platform has successfully completed KYC requirements with SolidPROOF, demonstrating its commitment to transparency and user safety.
Moreover, ETFSwap (ETFS) uniquely integrates traditional finance and decentralised finance (DeFi), enabling investors to benefit from both realms. This approach allows for portfolio diversification through various ETFs, helping investors spread risk and potentially enhance returns across different sectors. Additionally, the ETFS token is now listed on CoinMarketCap, establishing ETFSwap (ETFS) as a frontrunner in the cryptocurrency space.
The anticipation surrounding the beta launch of ETFSwap (ETFS) is building, especially as it sets its sights on a staggering 37,000% rally by 2025, outpacing established players like the Cardano price, the Dogecoin price, and the XRP price. With backend development and rigorous testing already completed, the platform promises efficiency through staking rewards, liquidity pools, and a live ETF price tracker. The excitement is infectious, as potential investors recognize the unique value of participating in this transformative project that could redefine the crypto landscape.
Cardano Price: Faces Challenges Amidst Innovative Blockchain Advancements
The Cardano price has gained attention for its innovative blockchain technology and sustainability focus. Designed for smart contracts and decentralised applications, the Cardano price aims to create a secure, scalable ecosystem. However, it faces challenges in gaining traction compared to other cryptocurrencies.
The Cardano price has fluctuated due to market sentiment and economic factors. While it boasts a dedicated community, the potential for explosive growth like that of ETFSwap (ETFS) remains uncertain. Investors seeking substantial returns may find the current trajectory of the Cardano price less appealing, especially with ETFSwap’s ambitious goals on the horizon.
Dogecoin Price: Volatility Raises Questions About Long-Term Viability
The Dogecoin price, originally a meme, has become a well-recognized cryptocurrency. Its community-driven nature and celebrity endorsements boost popularity, but the Dogecoin price’s underlying fundamentals remain questionable. While the Dogecoin price has seen significant surges, its long-term viability as an investment is debated.
The volatility of the Dogecoin price can benefit some investors, yet its lack of a robust use case compared to platforms like ETFSwap (ETFS) raises concerns. As the cryptocurrency market matures, investors may prefer projects with concrete applications, making ETFSwap’s offerings particularly attractive.
XRP Price: Faces Regulatory Challenges Amid Cross-Border Payment Ambitions
The XRP price aims to streamline cross-border payments between financial institutions. Despite its technological advantages, the XRP price faces regulatory scrutiny that hinders growth and creates uncertainty. While the XRP price has established partnerships and use cases, its potential for dramatic increases, like ETFSwap’s (ETFS) projections, seems limited. Investors may be attracted to ETFSwap’s (ETFS) innovative trading model and significant returns, especially considering the ongoing challenges the XRP price faces in the regulatory landscape.
Conclusion
While the Cardano price, the Dogecoin price, and the XRP price have their strengths, ETFSwap (ETFS) offers unmatched potential for a 37,000% rally by 2025, making it an exciting investment opportunity as its set to launch on exchanges. Meanwhile, ETFSwap (ETFS) presale tokens are selling quickly. Buy yours now at $0.05769 before they are available on exchanges.
For more information about the ETFS Presale:
Donald Trump’s US election victory on Wednesday and the resulting euphoria failed to boost the price of Trump-themed memecoins, mostly due to so-called ‘sell the news’ trend. These tokens, which had seen significant gains earlier in the week, dropped by double digits following his win.
Some of the popular memecoins shed over 25% in market capitalization just a day after the victory, including TRUMP, MAGA, and TREMP.
Trump-Themed Tokens Suffer on ‘Buy the Rumor, Sell the News’ Trend
The PoliFi tokens drop happened despite the broader rise in the crypto market following Donald Trump’s victory in the US election. The tokens that were linked to Trump, among others, took a hit. The decline indeed did shake investor confidence in the PolitiFi assets, with traders seemingly selling the news-a pattern not too different from past meme coin behavior.
Similarly, like the rapid surge of Dogecoin prior to Elon Musk’s Saturday Night Live appearance in May of 2021, which peaked at $0.73 and fell over 30% shortly after, political tokens experienced a sharp sell-off following the election hype. For its part, DOGE is still 74% below its all-time high at current levels.
This is part of the “buy the rumor, sell the news” trend common with event-driven tokens that tend to be susceptible to political changes. Despite Trump’s win, the slump in these meme coins should bring in the realization of a possible weakness in the appeal for such meme coins and that some of their liquidity might be shifting from them.
As a matter of fact, many investors actually seem to be shifting funds into Bitcoin and other altcoins as the flagship cryptocurrency has been making new highs, raising hopes of a new bull market.
Losing Over 25% in Market Cap
Despite the euphoria surrounding Donald Trump’s election victory on Wednesday, Trump-themed memecoins failed to sustain their earlier gains, and some fell over 50% in the first hours after results.
These tokens, which had surged leading up to the election, saw sharp declines, with some losing over 25% in market capitalization just a day after his win. Memecoins like TRUMP, MAGA, and TREMP were among the biggest losers, highlighting the volatility typical of these event-driven assets.
Trump-Themed Memecoins Drop Over 50% After Election Rally—Is Recovery Possible?https://t.co/qSXjNg02v1
— FX Leaders (@FXLeadersCom) November 7, 2024
Trump-themed meme coins have plummeted since Donald Trump’s election win, with several tokens plummeting in price. MAGA, the largest Trump-themed meme coin by market capitalization, was down 24.26% in the last 24 hours, changing hands at $1.97 at press time, while its market capitalization fell from $212 million on Nov. 6 to $87 million. Another prominent token, MAGA HAT, inspired by Trump’s iconic red hat, was also down 32.22%, its market cap fallen to $38 million.
The other big loser was Dark MAGA, which blew out on Nov. 5 and then plummeted 20% from the pre-election level to $0.0048, wiping out upwards of $2.6 million in market cap.
This happens just at the right time, just like all other meme coins follow a sharp sell-off after just one peak moment. Event-driven tokens, such as the PoliFi coins, are highly volatile and connected with political events that tend to swing fast and may make them vulnerable to considerable shifts in value.
Teuta Franjkovic
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries.
Starting her career in 2005 as a lifestyle writer for Cosmopolitan, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg.
Influenced by figures like Don and Alex Tapscott and Laura Shin, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions.
Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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