Cryptocurrencies News Today

What’s good for Bitcoin, can also be good for Ethereum? Crypto experts have always stated that when Bitcoin rallies, Ethereum tends to move even higher. And in the context of the last Bitcoin halving, one could only consider the possibilities. The entire crypto community focuses on Bitcoin at the moment, and we have to admit that it’s only natural for this to happen because it’s the most popular digital currency, has the largest market capitalization, and just went through a halving event. Yet, Ethereum continues to be one of the most lucrative assets to add to one’s portfolio. The highly anticipated event in the Bitcoin network took place on April 20 this year, and crypto enthusiasts are waiting to see what the industry will bring both for the first digital currency (and keep an eye on the btc price prediction) and the other digital assets based on blockchain technology. Among the assets that have been garnering attention together with Bitcoin is Ethereum, which has reached the status of the second-largest digital currency by market capitalization. Its supporters believe that it has the potential to reach a new high in the aftermath of the Bitcoin halving, considering it has always followed the same direction as Bitcoin. Image source https://unsplash.com/photos/a-purple-and-blue-abstract-background-with-a-diamond-L2QB-rG5NM0 What happened to Ethereum after the last halvings? The key to predicting where Ethereum heads after the last Bitcoin halving is to check what happened with its price, and the entire cryptocurrency market, after the second and third halving. Let’s start with the second halving, it took place on July 9, 2016, and it cut down the reward for mining new blocks from 25 BTC to 12.5 BTC. However, it has significantly impacted the entire market because Ethereum and other digital currencies have surged in value. Three months after the halving, Ethereum’s price increased by 1.8%. The third halving took place on May 11, 2020, and the reward was reduced from 12.5 BTC to 6.25 BTC. It also sprang a bull market in digital currencies, and all assets, including Ethereum, reached new highs. ETH’s price went from $160 before the halving to $211 immediately after the event. One month later, it soared to $249, and in the next three months, it reached $398. Will the last halving raise the tide for Bitcoin and Ethereum? Bitcoin has often been named digital gold, so Ethereum could be considered a form of digital silver, especially in connection to Bitcoin. Is this of any relevance? Investors will find this piece of information quite valuable because it means that Ethereum is sold at a lower price and has a lower market capitalization than Bitcoin, but it’s still one of the best instruments to add to an investment portfolio. Therefore, as silver follows gold in terms of price movements, Ethereum will most likely swing higher in value if BTC does it. Over the last few months, Bitcoin slowly moved towards its all-time high, and the crypto community believes it’s the result of the ETFs’ approval and halving. Even if Ethereum’s ETFs aren’t approved yet, they will most likely be the next to gain acceptance from the Securities and Exchange Commission. Many crypto enthusiasts believe that Ethereum might be a better investment tool than Bitcoin Don’t get us wrong, it makes great sense to own Bitcoin at the moment, especially as it just went through a halving, and its value is expected to increase in the following months. However, it makes more sense to add altcoins like Ethereum to your portfolio because they are more accessible in terms of price and offer broader solutions in terms of technology and innovation. Understanding Ethereum’s deflationary mechanisms While the Bitcoin halving is of great importance in the context of discussing Ethereum’s predicted value in the future, its transition to a deflationary model is also of paramount consequence. Ethereum triple halving will have a tremendous impact on its value in the future because it cuts down ETH issuance, burns ETH through the EIP-1559, and reduces staking rewards. All these mechanisms are meant to control the amount of ETH in circulation and enhance its appeal to investors. With Bitcoin being a scarce digital asset thanks to the halving events, Ethereum needed a mechanism to maintain its popularity among the public and stay competitive. The halving drives a positive investor sentiment for the entire crypto sector The halving doesn’t impact only the Bitcoin network but the entire sector because it drives people’s attention towards cryptocurrencies. When they research Bitcoin, they also get in touch with other digital currencies because the altcoins sector is extensive. Because Bitcoin and all the other digital currencies performed well after the previous halvings, it’s only natural for investors to have a positive sentiment towards the market and, therefore, towards Ethereum. Ethereum has become one of the most popular digital currencies because it has enabled investors to make returns. Ethereum is a valuable asset to be used for portfolio diversification and has become more relevant since investors have started to capitalize on the innovative solutions it powers. A shift towards buying altcoins could drive more capital into Ethereum. Reasons to add Ethereum to your investment portfolio Buying ETH in 2024 might prove a smart move for those looking to make a profit. Here’s why: - Ethereum is the largest network of dapps. There are over 3000 dapps on the blockchain which offer a broad series of use cases, from creating decentralized exchanges to facilitating transactions and powering DeFi games. - Ethereum is scalable and eco-friendly. It completed the Merge and transitioned from a PoW to a PoS mechanism, requiring less energy to confirm new blocks. - It’s an uncensorable network. Ethereum provides the ideal ecosystem for blockchain developers to create applications that aren’t victims of censorship. - It has the long-term potential to grow in value. Predictions are speculative in the crypto sector, but analysts believe that Ethereum is one of the projects that will register long-term price appreciation because it plays a pivotal role in the evolution of blockchain technology. Summing up The last Bitcoin halving affected Bitcoin and all the other cryptocurrencies, but especially Ethereum, which is closely connected to the first digital currency.