The Bitcoin halving is already done, but its effects will be felt for the next year and beyond. As a result, these two cryptocurrencies should be on your radar right now.
The long awaited bitcoin (btc -0.16%) The halving came and went without the fireworks some expected. Prices have barely changed since April 19, 2024, but don't be fooled. The long term effects of Bitcoin Halvings They are well documented and often lead to substantial price increases in the following months, but the increase never comes immediately.
The cryptocurrency market is still full of opportunities, especially with the recent approval of Bitcoin Spot Price ETF in January and next Ethereum (ETH -0.21%) spot ETFs this summer. The ETF launches and Bitcoin halving should bring bullish effects to the broader crypto sector.
Here are two cryptocurrencies that should be on your radar right now. It will be a slow process until suddenly it won't be. I'm not trying to rush you, but to make sure you're not left empty-handed when the real price surge begins. The exact timing is up in the air and I'd rather be early than late for the launch.
The classic Bitcoin game
You can't go wrong with a classic. The cryptocurrency leader just suffered its fourth halving, cutting the block reward from 6.25 to 3,125 digital coins. The lower rate of coin creation reduces Bitcoin's effective inflation rate, which now sits at a cautious 0.85%. In comparison, physical gold mining and recycling rates result in annual supply-side inflation of 3.1% for the traditional leader in store of value.
Cathie Wood of Ark Invest sees a lot of value in Bitcoin inflation falling below that of gold, as institutional investors should be more likely to now treat the biggest crypto name as a long-term value investment.
Historically, Bitcoin halvings have set the stage for significant price increases, even if the effects are not immediate. Think of it like planting a seed. The fruits may not be visible yet, but they are growing beneath the surface.
Existing chart patterns suggest that Bitcoin is likely to skyrocket over the next 12 to 18 months. I admit that this analysis is close to a low quality technical analysisbut it is also based on real and dramatic changes in the economic model of Bitcoin mining. The historical reaction data set is very small, as this is only the fourth four-year halving cycle in Bitcoin history. Several unique developments in the market landscape also muddy the waters of the market reaction. Therefore, it is difficult to say exactly how far this increase will go. But the upward direction of the next Bitcoin price chart is quite clear.
As more investors gain exposure through spot ETFs, Bitcoin remains a solid option for both beginners and seasoned cryptocurrency enthusiasts.
Polkadot: the Web3 revolution is approaching
The Web3 Foundation's official blockchain network and cryptocurrency have had a bumpy ride in 2024. Moles (SPOT -0.66%) Prices move with the wind, alternately swooning and rising as investors await the Web3 revolution. At the moment, Polkadot price has retraced 87% below 2021 all-time highs and 39% from a short-lived peak in March.
But here's the thing Moles: It is a project with great ambitions. Its ability to help different blockchains interoperate seamlessly could be a game-changer. Polkadot will be the digital glue that holds web3 architecture together, taking full advantage of the unique strengths of each blockchain system in a single application writing framework.
The current price decline presents a potential buying opportunity for investors who believe in the transformative power of Web3. As the ecosystem matures and adoption increases, the Polkadot token could see substantial gains.
And do not forget stake your Polkadot tokens while you wait. He annual percentage yieldSimilar to interest on a savings account or dividends on a stock, it varies over time but is currently 12.3% in my country. Coinbase account. Not bad at all, right?
Luck favors the prepared.
The cryptocurrency market may seem calm after the halving, but there is a lot of action beneath the surface. Bitcoin offers stability and proven growth after the halving, Polkadot presents a bet on the technology of the future, and both are poised to post strong price gains in the next year or two.
Keep these cryptocurrencies on your watch list and don't be afraid to invest your money in these new digital assets. Remember, no one knows exactly when they will rise again like they did four years ago.
Anders Bylund It has positions in Bitcoin, Coinbase Global, Ethereum and Polkadot. The Motley Fool holds and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.
