Bitcoin Halving: A Gateway to Altcoin Prosperity?<\/h2>\n
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.<\/p>\n
Crypto analyst Wise Advice elaborates<\/a> that following each Bitcoin halving, there is a pronounced potential<\/a> for altcoins to surge. The analyst particularly noted:<\/p>\n I know when altcoin season will happen. And I’ll show you it… ‘<\/span>Halving’ It all depends on it […] When halving happens, after 1\u20131.5 years, the BTC ATH come And near that, ETH and other altcoins boom.<\/span><\/p>\n<\/blockquote>\n 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<\/a>.<\/p>\n 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.<\/p>\n 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.<\/p>\n As Wise Advice’ post suggests, such patterns underscore a recurrent theme: post-halving, money flows from Bitcoin into altcoins, significantly buoying their market positions<\/a>.<\/p>\n The analyst explained:<\/p>\n 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 growth was.<\/p>\n<\/blockquote>\n Notably, this shift is often reflected in Bitcoin’s dominance index\u2014a metric that measures Bitcoin’s market capitalization relative to the total market cap of all cryptocurrencies<\/a>. As observed post-halving, a decline in this index signals a growing interest in altcoins.<\/p>\n Bitcoin dominance<\/a> is now at 54.60%, a slight decrease from above 55%. Earlier this month, according to TradingView. Notably, the fact that the index is still somewhat high, as it still stands above 50%, suggests that the market still favors BTC.<\/p>\n However, the recent decrease could be the early signs of an emerging altcoin season. Analysts at Glassnode make a similar point<\/a>, linking present market circumstances with those in late 2020 when smaller stocks and riskier assets boomed, pointing towards an impending altcoin season.<\/p>\n Rotation coming?<\/p>\n Yesterday, we saw how #Nasdaq<\/a> declined >2% – while #IWM<\/a> rallied >3%.<\/p>\n This is a clear indication of Rotation. The move to riskier assets.<\/p>\n Will we also see this is #BTC<\/a> and #Alts<\/a>?<\/p>\n Well – in November 2020, we had a day just like yesterday. IWM soared and\u2026 pic.twitter.com\/WG9pooRxh1<\/a><\/p>\n\n
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How Does The Halving Points To Alts Season Now?<\/h2>\n
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