Bitgert has seen a straight 25% high in the last 3 days. Is this the effect of Bitcoin Halving? Pretty much so! Let’s understand this better.
Bitcoin halving occurs every 4 years when miners get the reward for confirming transactions and securing the network is reduced by half. So before this event, the reward stood at 6.25 BTC, which has now halved to 3.125 BTC. This is done mainly to regulate the demand and supply of BTC in the market.
Bitgert, being an altcoin, especially one with the potential to be a stablecoin, can see the spillover effect this event has on the market.
The major factors you can track to see this effect on any altcoin are market sentiment, technical characteristics, market liquidity, and historical price patterns. Let’s look at these for Bitgert coin since it has a clear sign of a price rally:
Market Sentiment and Liquidity
As per Coinmarketcap, the market’s fear and greed index stands at 63, given the Halving. Bitgert stands at toes, with Bitgert’s Fear and Greed rating at 66. The market is extremely bullish at the moment and has seen a massive 21.27% hike in volume, with a transaction value of over $111 billion in the last 24h. Bitgert’s volume rose by 31.20% to $1.7 million in the same period.
This shows that Bitgert is not just matching the market but also moving ahead of it.
Technical characteristics and historical price pattern
Bitgert was launched in 2021, while the last halving event occurred in 2020. So, we don’t know how Bitgert will respond to it, but we can compare its trajectory to similar coins. Since Ethereum has been around for a long time and has seen a halving twice before this, we checked its historical returns to find that it grew by 108% in May 2020 and 25% in July 2016.
If Bitgert were to follow ETH’s path in 2016, then it should grow by at least 184x more than 25% (around 4600% growth), as the crypto market stood at a market cap of $12.66 billion in July 2016 and is now at $ 2.33 trillion.
However, Bitgert also has much more competition than ETH had in 2016. So, to be realistic, analysts have predicted that if all goes right, then Bitgert should grow easily by 800% following the post-halving momentum.
But at the EOD, it’s better that you calculate risks and DYOR before investing in crypto assets.
