Observing the Cryptocurrency Market: What Effect Will the Bitcoin Halving Event Have on Prices?

The highly anticipated Bitcoin (BTC) halving is just around the corner, and experts are predicting that it will bring about a surge of volatility in the crypto market. This has prompted exchanges like BitMEX to make strategic adjustments, such as increasing the leverage on their Bitcoin perpetual swap to 250x.

Renowned crypto analyst Michaël van de Poppe remains optimistic about the industry’s future, despite the potential short-term turbulence that may follow the halving. He believes that institutional investors and retail traders have been preparing for this event for years, leading to high levels of anticipation. Additionally, the widely-tracked stock-to-flow model predicts that Bitcoin’s price will double within the next six months.

Poppe’s projections indicate that after the halving, Bitcoin’s price will range between $61,000 and $72,000 as it absorbs increased buying pressure. This is expected to pave the way for a resurgence in altcoins, while Ethereum, the Decentralized Physical Infrastructure Network (DePIN), and real-world asset (RWA) tokenization take the lead in the second quarter. In the third quarter, a broader market correction is anticipated, setting the stage for a monumental rally across various cryptocurrencies.

Overall, experts believe that the Bitcoin halving will bring about significant changes in the crypto market, with opportunities for investors and traders to capitalize on the anticipated price increases and market shifts.