The Bitcoin and altcoin markets have remained on a rollercoaster ride over the past few months, with investors looking to profit at every opportunity, especially given the trend of creating meme coins like PEPE, AIDOGE, TURBO, ….
Now, with the Bitcoin halving imminent, prominent crypto analyst Michael van de Poppe believes it’s time to accumulate altcoins.
Time to buy altcoins
Van de Poppe shared his analysis of historical data on altcoin market cap dominance and identified key areas from 2016 where altcoin price reaction prior to the Bitcoin halving has followed. his prediction.
According to the analyst, many altcoins can attract investments, leading to an increase in their market capitalization dominance.
Notably, the Bitcoin halving is an event that occurs every 210,000 blocks mined, which is roughly every four years. It is a mechanism put in place to ensure the scarcity of Bitcoin, helping to maintain its value.
During the halving, the block reward is cut in half, which reduces the supply of newly mined Bitcoins. The last Bitcoin halving took place on May 1, 2020, and the next one is expected to occur between April and May 2024.
According to van de Poppe, a year before the next Bitcoin halving is the perfect time to take that long position on altcoins. His current prediction is bolstered by the magnitude of altcoin market cap dominance, which is roughly a year before the next Bitcoin halving.
This is a time when the market experiences an increase in the price of altcoins, resulting in increased demand for these cryptocurrencies.
While the analyst does not suggest which altcoins to pocket, he asked his 657,000 Twitter followers, “What coins are you accumulating?”
Expected reaction after Bitcoin halving
Altcoins have been making significant strides in the crypto market and their dominance is increasing. Over the past year, we have seen the dominance of altcoins like Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE) and Cardano (ADA) increase significantly.
According to CoinMarketCap, Bitcoin currently holds about 40% market dominance, while altcoins hold the remaining 60%. This is a significant change from a year ago when Bitcoin dominance was close to 70%. Regardless of that, the altcoin market is expected to see a massive price spike following the Bitcoin halving.
Previously, altcoins tended to outperform Bitcoin in the year following the halving. This is mainly because investors often look for alternative investment opportunities when the price of Bitcoin becomes too high and altcoins can provide an attractive alternative.
In Van de Poppe’s current view, the coming months could be a pivotal time for investors to accumulate altcoins as the Bitcoin halving takes place from April to May next year.
After the halving event, the block reward for Bitcoin miners who confirm transactions on the network will be reduced to 3.125 BTC.