Bitcoin price changes after halving [Changes in ETH's share of the total market value of cryptocurrencies] [Ethereum's trend in the past year]

Of course, it is Bitcoin and Ethereum. As a 7-year veteran in the cryptocurrency industry, more than 95% of people switch back and forth between Bitcoin and Ethereum. It is not to say that other currencies are not good, but if you summarize the development of the cryptocurrency industry in the past decade, except for the big cake and the concubine, most of them ended up with zero.

Bitcoin is about to usher in its fourth halving in 2024, and the market situation is worthy of everyone's attention!

1. Bitcoin

Bitcoin will be halved every 210,000 blocks (approximately 4 years). After that, about a year and a half (17 months on average), the price of BTC will reach a peak and then start to continue to fall. So far, BTC has experienced three halvings, in 2012, 2016, and 2020. After the halving event, the price of BTC has risen significantly, and will break historical records and create new price peaks.

Bitcoin price changes after halving

The highest and lowest prices of BTC after halving

Summary: Since its birth, BTC has risen from 0 to around 68,000 US dollars, with ups and downs in between. It seems chaotic, but there are hidden rules behind it: BTC will rise sharply after halving, and the high point of each halving round is better than the previous round; it will fall sharply about one and a half years after the halving, and the decline will reach more than 70%. (Although there are some general rules in the price trend of BTC, you need to be flexible when using it, and remember not to copy it mechanically)

2. Ethereum

As the second-in-command with a solid position in the currency circle, Ethereum naturally has its resilience and actual fundamental support. After entering the second half of 2022, the successful upgrade of Ethereum 2.0 has changed the entire long-term supply and demand relationship. The transition from POW to POS means that a deflationary environment will be the general direction of Ethereum.

Ether is the native currency of the Ethereum network and can be used for a range of functions on the Ethereum network, including:

  • Paying Ethereum transaction fees

  • Staking of various open financial products

  • Can be borrowed or loaned

  • Used as a payment method for certain retailers and services

  • As a reward for mining

  • Where there is power, there is value. Ethereum has so many functions that it naturally generates value. In addition to its utility value, some capital activities make Ethereum continue to appreciate.

  • When investing in ICO, or initial coin offering, investors usually give priority to ETH when choosing investment projects.

  • With the increase in the number of DAPPs and smart contracts, more and more smart contracts are running on Ethereum, and the demand for Ether is gradually increasing.

  • Speculative value. Currently, the main source of value for all blockchain assets is speculation, and Ethereum is no exception. The flow of funds in the capital market often causes fluctuations in the value of Ethereum.

In the first half of 2023, Ethereum has been rising steadily, but it is still in a rebound rhythm as a whole, and there is no sign of a restart of the bull market. We expect that Ethereum will be able to follow the overall financial market environment and the actions of the Federal Reserve in the second half of the year and develop a small trend, but it is difficult to get rid of the highs and lows of 2022, so wide fluctuations may be the main theme in 2023.

Relatively speaking, 2024 has the opportunity to be a time point for the restart of the bull market in the cryptocurrency circle, and Ethereum will naturally rise. A more important factor is that Bitcoin will be halved again in mid-2024. Historically, Bitcoin halving has brought about a surge in the price of the currency, which is what we call a "bull market."

From the perspective of development, neither the cryptocurrency world nor Ethereum has entered a mature stable period. Higher volatility means that price changes will bring many opportunities and money-making effects. In the past few years, stories of making money through Ethereum and other virtual currencies have frequently appeared, and I believe this will not change in the future.