Bitcoin
Bitcoin halving has been completed. 2 cryptocurrencies to buy now.
The Bitcoin halving has been completed, but its effects will be felt for the next year and beyond. As a result, these two cryptocurrencies should be on your radar now.
The long awaited Bitcoin (Bitcoin 0.86%) the halving came and went without the fireworks some expected. Prices have barely changed since April 19, 2024, but don’t let that fool you. Long-term effects Bitcoin halves are well documented, often leading to substantial price increases in the following months – but the increase never occurs immediately.
The crypto market is still ripe with opportunities, especially with the recent approval of Bitcoin spot price ETFs in January and for coming Ethereum (ETH -0.17%) ETFs in sight this summer. The launch of the ETF and the halving of Bitcoin should bring bullish effects to the crypto sector in general.
Here are two cryptocurrencies that should be on your radar right now. It will be a slow burn until it suddenly isn’t. I’m not trying to rush you, but to make sure you don’t end up empty-handed when the real price increase begins. The exact moment has not yet been defined and I prefer to be early rather than late for the launch.
The classic Bitcoin game
You can’t go wrong with a classic. The cryptocurrency leader has just undergone its fourth halving, reducing 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 stands at a prudent 0.85%. In comparison, physical gold mining and recycling rates result in annual supply-side inflation of 3.1% for the traditional store of value leader.
Cathie Wood of Ark Invest sees a ton of value in Bitcoin inflation falling below that of gold, as institutional investors should be more likely to treat the biggest crypto name as a long-term value investment now.
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 soar over the next 12 to 18 months. I admit that this analysis comes close to a poor quality technical analysisbut it is also based on real and dramatic changes the economic model of Bitcoin mining. The dataset of historical reactions 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 market reaction. Therefore, it is difficult to say exactly how far this increase will go. But the upward direction of the upcoming Bitcoin price chart is quite clear.
As more investors gain exposure through spot ETFs, Bitcoin remains a solid choice for beginners and experienced crypto enthusiasts alike.
Polkadot: The Web3 revolution is coming
The official Web3 Foundation blockchain and cryptocurrency network has had a rough ride in 2024. Polka dot (POINT -0.06%) prices are blowing in the wind, alternately swooning and rising as investors await the Web3 revolution. At press time, Polkadot’s price is down 87% below its 2021 all-time highs and 39% since a short-lived peak in March.
But here’s the problem Polka dot: 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 the Web3 architecture together, taking full advantage of the unique strengths of each blockchain system in a single application building framework.
The current price drop 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 don’t forget to stake your Polkadot tokens while you wait. O 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 opinion. Coin base account. Not bad, right?
Luck favors the prepared
The crypto market may seem calm after the halving, but there is a lot of action below the surface. Bitcoin offers stability and proven growth post-halving, Polkadot presents a bet on future technology, and both are poised for robust price gains over 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, as they did four years ago.
Anders Bylund has positions in Bitcoin, Coinbase Global, Ethereum and Polkadot. The Motley Fool has positions and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.