Although Bitcoin recent price plunge has sent several Altcoins on a free fall, with declines ranging from 30% to 70%, there appears to be a beacon of hope set to shine through the murk.
The recent Bitcoin Halving in April is what the altcoin market needs to recover and surge beyond its highest levels.
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Bitcoin Halving: A Gateway to Altcoin Prosperity?
Bitcoin usually undergoes a Halving every four years, and this major event halves the block reward for miners in half. This fall in supply has normally triggered a bullish rally not only for Bitcoin but also for the altcoin market.
Crypto analyst Wise Advice elaborates that following each Bitcoin halving, there is a pronounced potential for altcoins to surge. The analyst particularly noted:
I know when altcoin season will happen. And I’ll show you it… ‘Halving’ It all depends on it […] When halving happens, after 1–1.5 years, the BTC ATH come And near that, ETH and other altcoins boom.
Historically, this Halving period has seen an explosion of attention for altcoins, driving their prices higher due to the scarcity concerns from Bitcoin following this event.
For example, in the previous Bitcoin Halving on November 9, 2021, leading altcoins, including — Ethereum (ETH) and Solana (SOL), Polkadot. (DOT), Avalanche (AVAX) all recorded a new all-time high.
For context, ETH peaked at $4,800 on November 10, SOL came in too with its new peak at $250 5 days earlier as revealed by Wise Advice, while DOT’s peak at $55 happened on the 4th of that month, and AVAX peak at $144 occurred later that month on the 21st.
How Does The Halving Points To Alts Season Now?
As Wise Advice’ post suggests, such patterns underscore a recurrent theme: post-halving, money flows from Bitcoin into altcoins, significantly buoying their market positions.
The analyst explained:
The more they buy, the higher the price goes. And it makes investors profitable. They sell a part of it and send to Ethereum and other tokens. The market cap of these are way lower, so even the inflow of $100 million can make a huge change (a month before the ATH, Bitcoin MC was in 2.5 times larger than Ethereum.) That’s why Solana and Polkadot’s ATH was 4-5 days faster. Then money goes to even smaller Alts. And they start to overperform big ones. The smaller they were, the bigger the…
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