Bitcoin has completed its fourth halving…what history says will happen from here…the added tailwind for crypto today…Luke Lango’s quantitative approach to altcoins
Bitcoin’s fourth half-division is now in record books. It took place on Friday.
What happens next?
Shortly, prepare for some sideways/weakness that will frustrate many “me too” (or similar) investors. Then, expect a big rally.
Here’s a little more detail.
If you are new to the DigestThe halving event is a Bitcoin-specific event whereby “miners”, or computer experts, solve complicated computer puzzles in order to create new Bitcoin. The algorithm already includes a certain amount of Bitcoin as a reward. This reward is reduced by half with each halving, thus the term “halving”.
For months, the three previous halvings were very positive for Bitcoin. There’s always a price drop right before the actual event.
It was the same as usual.
Bitcoin has fallen by about 20% since hitting its new record high in March of $75,830. It is currently trading at around $66,100 as I type this on Monday morning.
History suggests that this weakness is not the only one.
Luke Lango, our expert in cryptography, can provide you with more information.
Bitcoin’s price soared between January and April. BTC has started to pull back at this Fourth Halving.The behavior of the past has been very similar to this.
In both the second Boom Cycle and the third Boom Cycle, pre-Halving sales did not last very long.
Take a look at the past Halvings to get an idea of what’s going on.
Bitcoin will consolidate for several weeks in each cycle before beginning to rise about two months following the halving.
Bitcoin has never looked back since then, in 2017 or 2021.
Bitcoins’ value dropped by 18% prior to the Second Bitcoin Half-Halving of July 2015. Before the Third Bitcoin Halving, which took place in May 2019, Bitcoin’s value dropped by 14%.
Bitcoin recovered these losses and then soared to new heights over the next 12 months.
Bitcoin value has soared after the Second Halving. 284%. It accelerated by even greater proportions after the Third Halving. 559%.The cycle that begins with a strong rally before the Halving and ends abruptly just prior to it is well established. This is the normal, and not an exception.
As noted above, this is a very unfortunate situation. DigestMany “me too” (me too) investors have lost their confidence during the downturn and sold just as Bitcoin began to rise.
Rekt Capital has more to offer:
You can also find out more about the following: [retracement around the time of the halving] Investors are left wondering if the Halving of prices was really a positive catalyst for price.After the Pre-Halving Retrace, a multi-month accumulation is performed.
Investors are often disappointed by the lack of results they see in BTC investments immediately after the Halving. They may be bored, impatient, or simply frustrated.
Bitcoin will then enter the uptrend parabolic once it breaks free from the area of re-accumulation. This is the phase when Bitcoin’s growth accelerates on its path to new All Time Highs.
Investors who have “been there, done that” should take extra precaution to avoid being shaken this time.
This latest cryptocurrency boom has a major difference – institutional backing.
In January of this year, the SEC for the very first time approved exchange-traded fund (ETF) that track bitcoin. It was an important moment that allowed large institutional investors to enter the crypto industry.
The January decision greenlit Bitcoin ETFS from BlackRock, Ark Investments/21Shares, Fidelity, Invesco and VanEck. The massive capital flows that have not been seen before in previous booms are now possible.
Here’s Bloomberg From a few months ago:
This is a staggering statistic that has fueled the latest crypto boom: $520,000,000 was poured into BlackRock Inc.’s Bitcoin ETF on a single-day basis.It was the biggest daily intake for any US ETF across all asset classes. This was the second largest daily inflow for any US ETF, across all asset categories…
Here’s the most bullish of them all…
It is likely that only a few institutional investors have taken positions in Bitcoin in advance of this latest price halving. As this year progresses, we’ll likely see more professional investors enter the market. The post-halving boom could be a surprise in terms of its gains.
Stephane Ouellette is the CEO of FRNT, a digital asset platform that focuses on institutional assets.
You can also find out more about the following: [pre-halving rally back in March] The BTC ETFs appear to have a major influence on the market.Approximately 20% of the investment advisors are approved to place their clients in this product. This is likely to take a full year.
What is the price of Bitcoin given that there could be a wave of dollars from institutions?
Here’s a perspective on the estimations. The Washington Post:
We would expect Bitcoin’s price to perform strongly over the coming 12 months,” stated [Bitwise senior crypto research analyst Ryan Rasmussen].Rasmussen says that while some have predicted gains as high as $400, the “consensus” estimate is more in the range of $100,000 to $175,000.
Altcoins are even more likely to see a future triple-digit rise than Bitcoin.
Altcoins, or “alternative coin”, are any other cryptocurrency than Bitcoin.
Luke explains why alternative crypto currencies can be better for your cryptocurrency capital than Bitcoin.
Bitcoin dominates “first halves”, or the first 12 months of a boom cycle. BTC dominates during this time as BTC is leading the charge and altcoins are lagging behind.This time, it has happened. In the last 12 months Bitcoin was leading, and altcoins were generally lagging. Once again, this is very typical.
Altcoins are always the leaders in the second half of boom cycles, or 12 months following a halving. After halving they tend to gain momentum, fade a little, and then soar around 7 to 8 months later.
Luke provides some stunning details to illustrate altcoins’ potential for firepower.
In May 2020, the third half-off will take place. Over 70 of the 300 top altcoins saw their values skyrocket more than 1,000% by the end the year following.
This is nearly 25 percent of top cryptocurrency gains.
Luke will be available tomorrow at 10:00 am Eastern to discuss the best trading strategy for this 4th halving.
Altcoins are often criticized for not having any intrinsic value. What do they do? “Where do their values come from?” And “Why are these necessary?”
These questions are often the prelude to the real, underlying problem:
Luke’s team believes they can take advantage of this.
Over the last few years, my team and myself have developed a quant system which identifies stocks before their price surges. This quantitative system of stage analysis has already been put to use in several stock services.Now, it’s not just stocks that we can use to spot cryptocurrencies at the beginning stages of big breakouts.
Over the last few months that quantitative system has taken names and kicked butt with stocks.
This system allowed us to record partial profits in the first quarter 2024 of approximately 110%, 55% 77% and 94% for four of our positions.
These gains were made in just a few months. Others took only a couple of weeks.
You could have earned up to $20,000 based on the results of our system’s back-tested tests. 1,929% The following is a list of the most recent and relevant articles. Bonk (BONK) USD, 873% The following is a list of the most recent and relevant articles. Apex Token (APEX-USD), You can also find out more about the following: 1,945% The following is a list of the most recent and relevant articles. Moon Tropica (CAH-USD), In only 12 weeks of this year.Tomorrow morning I will unveil the project to the public.
Every single day, the current crypto rally fueled by halving is creating 1,500 millionaires. My new system will help you become one. This system allows you to maximize your upside potential in altcoins, while minimising the risk of a possible downside.
Reserving your seat is easy.
Good evening.
Jeff Remsburg