If you have been watching the crypto market closely, you would have seen that Bitcoin is very close to breaching a mark of $10k. The halving is less than 4 days away and the market is really looking good especially the Bitcoin market. Yesterday, I watched a video of Kevin Sevenson(one of my favorite crypto YouTuber) and he mentioned that if we stay over $9100 and manage to break the next resistance level of $9500, we will be in bullish territory. He further added that this will be the biggest bull run of all time. He may be right but I think that as long as the coronavirus pandemic is here, we aren't going to see what we witnessed in late 2017.
Source
What Is Halving
A block is produced after approximately 10 minutes and the miners producing the blocks are rewarded with some Bitcoins. Currently, they are rewarded 12.5 BTC per block and after halving, the reward will be reduced to 6.25 BTC. The halving occurs after 210000 blocks are mined which takes 4 years approximately. When Bitcoin started first, 50 BTC were given to miners for mining a block and so far there have been two halving events, one in 2012 and second in 2016. If the price stays below $10k after the halving, it might force some of the small miners to quit mining aa it won't be profitable for them.
How Will It Affect Altcoins
If your crypto portfolio has more altcoins than BTC, you might be worried right now as the altcoins are not following Bitcoin right now, rather Bitcoin is going up on the expense of altcoins. You might have observed that a lot of altcoins are struggling to take off and some of them are even losing value. This is because of the fact that people know that halving is around the corner and they are aware of the fact that halving will increase the price of BTC, so they don't want to miss out and in the process shill their alt bags to have more Bitcoin.
What's good is that the total market cap is increasing meaning that more money is coming into crypto. This is really a good sign for Bitcoin for time being and then altcoins. Right now, BTC is trading around $10k and it may probably rise to $12k in the coming days or maybe even more. But there will come a time when the people will take profit and spread their money across altcoins and this is where alt run will begin. Bitcoin has a huge market cap and even if billions are poured into it, the rise in price is minimal but if we only add a few million into lower market cap coins like Hive, the price rise will be more. Some alts may even gain 100% or even more.
So, the point I am trying to make here is that there will be an alt run as well but probably that will take some time, possibly after BTC cools down. But that's just me and this is my opinion, you might have a different one. You might not look at things the way I do and that's perfectly alright. If you do think otherwise or if you think I am not making valid points, let me know in the comments section.
And of course, I am not a financial advisor, this is meant for information and entertainment purposes only
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