Rally periods of the cryptocurrency market are usually shaped around the Bitcoin halving. The next halving will roughly fall in April or May of 2024. Experts see buying opportunity for various altcoins before this date.
Timing of the next Bitcoin bull
The crypto community argues that Bitcoin’s halving cycle triggers market rallies. Each halving halves the rate of new BTC issuance. Bitcoin has a limited supply of 21 million. Investors predict that the next halving cycle in spring 2024 will start a new rally cycle.
There’s currently about a year left until the next Bitcoin halving:
Bitcoin and altcoins can perform well in their halving cycles for the following reasons.
- Halving halves new Bitcoin production. At the same time, the demand for cryptocurrency remains the same. This artificially created scarcity is upping the entire cryptocurrency market.
- BTC has already halved in 2012, 2016 and 2022. Bitcoin’s previous post-halving record levels are making investors bullish on next year’s spring halving. Positive pre-halving sentiment causes a volatility in the initial market.
- Bitcoin is the largest cryptocurrency by market cap. Consistent BTC tracking of altcoins indicates that they will follow into the bull zone.
Bitcoin halving and its effect on price according to historical data
Now, let’s dive into theory. Bitcoin halving happens every 210,000 blocks on the Bitcoin Blockchain. This period roughly corresponds to once every four years. Previous halving cycles have grown the entire cryptocurrency market. Bitcoin’s rainbow chart shows the trend intuitively:
Analyst Evgeniya Likhodey shares the following points to note in Bitcoin’s rainbow chart:
- Blue vertical lines cut the dates in half. The far right row shows the next halving date, assuming BTC network speed does not change significantly in 2024.
- The black curve tracks Bitcoin’s price changes relative to the halving period.
- The colors of the rainbow define whether Bitcoin is overvalued or undervalued. Investors evaluate the long-term investment potential of a cryptocurrency by how close its price is to the blue edge of the rainbow. Conversely, as the price of a coin approaches the red border, it can be considered overvalued.
Which altcoins to buy, experts answer
CFA.RF CEO Nikolay Zhuralev says that the basis of his investment portfolio should be BTC and Ethereum (ETH). In his new statements, he shares the following notes on this subject:
By holding Bitcoin and Ethereum you get a balanced risk-return ratio. Therefore, I recommend other cryptocurrencies only when you are looking for profits without paying attention to risk.
Nikolay Zhuralev also detailed the reasons for his choice with the following items:
- Bitcoin will be the main beneficiary of the halving. The standard deviation of BTC is lower than most other cryptocurrencies except stablecoins. Bitcoin is the best choice in the current environment because positive returns are quite likely if you decide to hold BTC for at least a few years.
- Although Ethereum is more volatile than BTC, it is a well-established project that has survived several crypto market cycles and even surpassed Bitcoin once. The leading altcoin is at the forefront of Web3 and Blockchain technology development. However, the key advantage of Ethereum is that thousands of cryptocurrency projects require ETH to pay for gas.
Could Loopring (LRC) be a sensible choice?
Another altcoin worth buying, according to Nikolay Zhuravlev, is Loopring (LRC). This altcoin solves the Ethereum network congestion problem. Amid the expected increase in ETH load in the next rally cycle, Zhuralev believes that “Loopring will offer a disproportionately higher return than the rest of the market.”
Holding Bitcoin, the consensus of experts
Yaroslav Ivanov, strategic director of ALTA – Blockchain Accelerator & DLT Mass Adoption, also prefers Bitcoin. Like Nikolai Zhuravlev, he primarily emphasized the importance of Bitcoin. In response to which altcoins to buy before the 2024 halving, he said:
The majority of the portfolio should be in Bitcoin. The middle part should be in Ethereum and other altcoins such as Waves, XRP, Dash and Mana should not exceed 15% of the total investment. It’s also worth looking at high-potential coins like Aptos, Zilliqa, and others backed by serious funds with a long-term corporate strategy.
Dmitry Noskov, a crypto expert at StormGain, joined the discussion. Here’s how he answered the question of which cryptocurrency to buy to profit from the next growth cycle:
In anticipation of the 2024 halving, Bitcoin may also push up other popular currencies. Therefore, if we are to highlight other cryptocurrencies that have a chance to grow in the near future besides Bitcoin, these are primarily Ethereum, which has momentarily exceeded $ 2,000, and Litecoin, which has risen above $ 90 and is targeting $ 100.
Experts are voting for these altcoins before the next rally
The experts above highlight altcoins that should be bought ahead of a potential rally with the halving in 2024. The altcoin choices that emerged at this point were:
- Litecoin (LTC)
- aptos (APT)
- Zilliqa (ZIL)
- Waves (WAVES)
- Ripple XRP
- Dash (DASH)
- Decentraland (MANA)
- Looping (LRC)
How is the Bitcoin price?
The leading crypto has slumped as low as $27,000 last week with a few worrying developments. cryptocoin.com Meanwhile, miners continued to reduce their reserves. Bitcoin is currently trading in the $28,500 region where it is showing signs of recovery.
