Bitcoin Shines as the next Halving Approaches
The Crypto currency market continues to grapple with the frosty winds of the current crypto winter brought on by the monumental collapse of FTX and many of the Crypto friendly banks who have over capitalised on the digital asset sector. But it isn't all bad news with market experts weighing in on the impacts of the upcoming Bitcoin Halving event scheduled to occur next year.
Historically the halving of Bitcoin events often lift the value of the token as the costs incurred by miners increases significantly due to the increased complexity the halving event causes in mining the Proof of Work digital asset. This in turn puts miners in a position to need to sell the token for a higher value to cover operating costs.
Bitcoin investors have historically accepted the increased costs of mining and are willing to pay a premium for the token and the current market trend is looking to possibly drive the price of Bitcoin further up if the latest mining and trading data is anything to go by. Currently miners are selling more Bitcoin than they can mine and once the next halving event occurs the token will become even more scarce as many miners will probably just exit the industry suffering increased costs to mine the token.
Bitcoin Resurgence
Bitcoin has hit a pivotal point as many seem to be preparing for the price increase next year with the token now trading at over USD 28,000 pushing to USD 29,000 The tokens market dominance has also jumped over 2% just breaking past 52% mark this is the highest Bitcoin has been since April last year. The increased interest in Bitcoin is being put on the fact the current court cases underway in the US are causing confusion around what is considered a security and what isn't.
It is safe to say at this stage from all the information released the Securities and Exchange Commission (SEC) does not consider Bitcoin to be a security and while it is the main token for the sector people are diverting their funds to it. This comes as Solana was impacted this week due to the constant messaging in the legal cases against FTX. The token does seem to have recovered slightly and is trading at USD 24.86
So while negative press brought on by the various legal challenges, regulatory uncertainties and broader market conditions have caused an extended bear market. There are many out there that appear to be switching their positions and backing Bitcoin with the next Bitcoin Halving being the possible catalyst to get us back to high times. This might be the first indication of that occurring.
Bitcoin's broader Impact
The increased price in Bitcoin has seen some beneficial price movement for our own token's such as Hive and Leo which have seen a steady increase a long the same path as Bitcoin. This is because Hive is collateralised against Bitcoin on various exchanges much like the broader Crypto market.
As the original Digital currency Bitcoin is used by many decentralised assets as collateral or "pairs" to trade against. Throughout Hive's history this pairing has seen positive gains the biggest swings were seen in 2021 when Bitcoin was tipped to close in on USD100,000.
Although Bitcoin didn't reach the price point Hive did see some impressive feats of close to USD 5 per token seeing many Hivians increase their wealth and cash in on a market high.
So if Bitcoin replicates the same movements as 2021 than we can be ready to see Hive token once again breach USD 1 and sail right into double digits creating an even more high value platform and many Millionaires over night.
Alt Coin Season
Hive isn't the only token that is backed by Bitcoin with many Altcoins following the same procedure and while many are currently low you will see them too increase in value slightly as Bitcoin does. Previous trends indicate how people have traditional invested in Altcoins prior to big bull runs as once the Bitcoin price surges the gains made off investment in smaller altcoins can be larger than investing in Bitcoin itself.
Although this investment strategy comes at a high risk as it also leads to many projects in the past pulling the plug and rug pulling their investors or weakened codes being compromised. While the strategy can bring in a sweet payday it also comes at high risk.
With the new Bull Market looming at the possible boost Bitcoin will gain from the next halving event, there will be sure to be a plethora of new projects and protocols launching. Seasoned and amateur investors will be on the hunt for the next big thing.
What are your thoughts? will the halving cause another Bull run in the Crypto space?
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Posted Using InLeo Alpha
From where you have the 52% market dominance of BTC. Both CMC and Coingecko show less than 50%.
Has it dropped since article was written?
Nope still above 52% https://www.tradingview.com/symbols/BTC.D/
Most coins even follow the trend of BTc and that is why they go up when BTC goes up and also come down when BTC comes down
But can we make that stop?
Will it be good?