The long awaited Bitcoin (CRYPTO: BTC) The halving has come and gone without the fireworks some expected. Prices have barely changed since April 19, 2024, but don’t let that fool you. The long-term effects of Bitcoin’s halving are well documented and often lead to significant price increases in subsequent months – but the increase is never immediate.
The crypto market is still buzzing with opportunity, especially with the recent approval of Bitcoin ETFs at bargain prices in January and the upcoming Ethereum (CRYPTO:ETH) spot ETFs this summer. The launch of the ETF and Bitcoin’s halving should have bullish effects on the crypto sector as a whole.
Here are two cryptocurrencies that should be on your radar right now. It will burn slowly until suddenly it doesn’t. I’m not trying to rush you, but to make sure you aren’t left empty-handed when the real price increase starts. The exact timing is still up in the air, and I’d rather be early than late to the launch.
The classic Bitcoin game
You can’t go wrong with a classic. The crypto leader just underwent its fourth halving, with the block reward reduced from 6.25 to 3,125 digital coins. The lower coin creation rate lowers Bitcoin’s effective inflation rate, which is now at a conservative 0.85%. By comparison, mining and recycling rates of physical gold result in annual supply-side inflation of 3.1% for the traditional store-of-value leader.
Ark Invest’s Cathie Wood sees a lot of value in Bitcoin’s inflation falling below that of gold, as institutional investors should now be more likely to treat the biggest crypto name as a long-term value investment.
Historically, Bitcoin halvings have paved the way 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 rise over the next 12 to 18 months. I admit that this analysis comes close to a low-quality technical analysis, but is also based on real and dramatic changes in the economic model of Bitcoin mining. The data set 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 are also muddying the market reaction waters. So it is difficult to say exactly how far this increase will reach. But the upward direction of Bitcoin’s upcoming price chart is quite clear.
As more investors gain exposure through spot ETFs, Bitcoin remains a solid choice for newcomers and seasoned crypto enthusiasts alike.
Polkadot: The Web3 revolution is coming
The Web3 Foundation’s official blockchain network and cryptocurrency have had a bumpy ride in 2024. Dot (CRYPTO: POINT) prices flutter in the wind, alternately swooning and rising as investors wait for the Web3 revolution. Currently, Polkadot’s price is down 87% below its 2021 all-time high and down 39% from a short-lived peak in March.
But here’s the thing about Polkadot: it’s a project with big ambitions. Its ability to make different blockchains work together seamlessly could have a game-changing impact. Polkadot will be the digital glue that holds the Web3 architecture together, leveraging the unique strengths of each blockchain system into a single framework for writing apps.
The current price drop offers 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 significant gains.
And don’t forget to stake your Polkadot tokens while you wait. The annual percentage return, similar to interest on a savings account or dividends from stocks, varies over time, but currently stands at 12.3% in my opinion. Coin base account. Not too shabby, right?
Luck favors those who are prepared
The crypto market may look quiet after the halving, but there is plenty of action beneath the surface. Bitcoin offers stability and proven growth post-halving, Polkadot is betting on future technology, and both are poised for robust price gains over the next two years.
Keep these cryptos on your watchlist and don’t be afraid to invest your money in these newfangled digital assets. Remember, no one knows exactly when they will rise again as they did four years ago.
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Anders Bylund has positions in Bitcoin, Coinbase Global, Ethereum and Polkadot. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Ethereum. The Motley Fool has a disclosure policy.
Bitcoin halving is complete. 2 Cryptocurrencies to Buy Now. was originally published by The Motley Fool
