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The Bitcoin halving is over. 2 cryptocurrencies to buy now.
The Bitcoin halving is over, but its effects will be felt over the next year and beyond. As a result, these two cryptocurrencies should be on your radar right now.
The long awaited Bitcoin (Bitcoin 0.14%) the halving came and went without the fireworks some expected. Prices have barely moved since April 19, 2024, but don’t let that fool you. The long-term effects of Bitcoin halvings they are well documented and often lead to substantial price increases in the following months, but the surge never arrives immediately.
The cryptocurrency market is still full of opportunities, especially with the recent approval of Bitcoin spot price ETF in the month of January and the imminent Ethereum (ET 0.44%) Spot ETFs this summer. The ETF launch and Bitcoin halving are expected to bring bullish effects to the cryptocurrency sector in general.
Here are two cryptocurrencies that should be on your radar right now. It will be a slow burn until suddenly it isn’t. I’m not trying to rush you, but to make sure you won’t be left empty-handed when the real price increases begin. The exact timing is still up in the air and I would rather be early than late to the launch.
The classic Bitcoin game
You can’t go wrong with a classic. The cryptocurrency leader just underwent its fourth halving, cutting the block reward from 6.25 to 3,125 digital coins. The lower coin creation rate reduces Bitcoin’s effective inflation rate, which now stands at a conservative 0.85%. In comparison, physical gold mining and recycling rates translate to annual supply-side inflation of 3.1% for the traditional leader in value storage.
Cathie Wood of Ark Invest sees plenty of value in Bitcoin inflation falling below that of gold, as institutional investors should be more likely to treat the biggest cryptocurrency name as a long-term value investment now.
Historically, Bitcoin halvings have set the stage for significant price increases, although 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 rise over the next 12-18 months. I admit that this analysis comes close to low quality technical analysisbut it is also based on real and dramatic changes 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’s history. Several unique developments in the market landscape also muddy the waters of market reaction. So it’s hard to say exactly how far this wave 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 choice for both beginners and seasoned cryptocurrency enthusiasts.
Polkadot: The Web3 revolution is upon us
The official blockchain network and cryptocurrency of the Web3 Foundation has had a bumpy ride in 2024. Polka dot (POINT 1.20%) prices fluctuate in the wind, swooning and soaring from time to time as investors await the Web3 revolution. As of now, Polkadot price has fallen 87% below its 2021 all-time highs and 39% from its short-lived peak in March.
But here’s the thing Polka dot: It is a project with great ambitions. Its ability to help different blockchains interact seamlessly could be a game-changer. Polkadot will be the digital glue that holds the Web3 architecture together, making the most of the unique strengths of each blockchain system in a single app writing framework.
The current price decline represents 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 it stake your Polkadot tokens while you wait. THE annual percentage returnsimilar to interest in a savings account or dividends on a stock, varies over time but is currently 12.3% in my Coinbase account. Not too shabby, right?
Fortune favors the prepared
The cryptocurrency market may seem calm after the halving, but there is a lot of action under the surface. Bitcoin offers stability and proven post-halving growth, Polkadot represents a bet on future technology, and both are poised to see robust price increases 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 fly again, like 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.