The much-anticipated Bitcoin (BTC 0.02%) halving has come and gone without the fireworks some expected. Prices have barely budged since April 19, 2024, but don't let that fool you. The long-term effects of Bitcoin halvings are well-documented, often leading to substantial price increases in the following months -- but the surge never comes right away.
The crypto market is still brimming with opportunities, especially with the recent approval of Bitcoin spot-price ETFs in January and the upcoming Ethereum (ETH 0.10%) spot ETFs this summer. The ETF launches and Bitcoin halving should bring bullish effects to the crypto sector at large.
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're not left empty-handed when the real price surge kicks off. The exact timing is up in the air, and I'd rather be early than late to the launch.
CRYPTO: BTC
Key Data Points
The classic Bitcoin play
You can't go wrong with a classic. The leader of cryptos has just undergone its fourth halving, cutting the block reward from 6.25 to 3.125 digital coins. The lower coin-creation rate lowers Bitcoin's effective inflation rate, which now stands at a prudent 0.85%. In comparison, the mining and recycling rates of physical gold result in a 3.1% annual supply side inflation for the traditional value-storage leader.
Ark Invest's Cathie Wood sees a ton of value in Bitcoin's inflation falling below gold's, as institutional investors should be more likely to treat the largest crypto name as a long-term value investment now.
Historically, Bitcoin halvings have set the stage for significant price increases, even if the effects aren't immediate. Think of it like planting a seed. The fruits might not be visible yet, but they're growing under the surface.
Existing charting patterns suggest that Bitcoin is likely to soar over the next 12 to 18 months. I'll admit that this analysis skims close to a low-quality technical analysis, but it's also based on real and dramatic changes to the economic model of Bitcoin mining. The data set of historical reactions is very small, since this is only the fourth four-year halving cycle in Bitcoin's history. Several unique developments in the market landscape also muddy the market-reaction waters. So it's hard to tell exactly how far this surge will go. But the upward direction of Bitcoin's upcoming price chart is pretty clear.
As more investors gain exposure through spot ETFs, Bitcoin remains a solid choice for both newbies and seasoned crypto enthusiasts.
CRYPTO: DOT
Key Data Points
Polkadot: The Web3 revolution is coming
The official blockchain network and cryptocurrency of the Web3 Foundation has had a bumpy ride in 2024. Polkadot (DOT 1.65%) prices are blowing in the wind, swooning and soaring by turns as investors await the Web3 revolution. At the moment, Polkadot's price has backed down 87% below the all-time highs of 2021 and 39% from a short-lived spike in March.
But here's the thing about Polkadot: It's a project with grand ambitions. Its ability to help different blockchains interoperate seamlessly could be game-changing. Polkadot will be the digital glue that holds the Web3 architecture together, making the most of each blockchain system's unique strengths in a single app-writing framework.
The current price dip presents a potential buying opportunity for investors who believe in Web3's transformative power. 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. The annual percentage yield, similar to interest in a savings account or dividends from a stock, varies over time but currently stands at 12.3% in my Coinbase account. Not too shabby, right?
Luck favors the prepared
The crypto market may look quiet after the halving, but there's plenty of action beneath the surface. Bitcoin offers stability and proven post-halving growth, Polkadot presents a bet on future tech, and both are poised for robust price gains in the next year or two.
Keep these cryptos on your watchlist, and don't be afraid to invest your cash in these newfangled digital assets. Remember, nobody knows exactly when they will soar again, as they did four years ago.
