The cryptocurrency market has been depressing the last year, with Bitcoin (BTC) being the cause of gallons of tears. After hitting an all-time high of $68,000 in the fall of 2021, BTC’s price dropped to around $17k by November of last year.
But after some recent hype and glimmers of hope, the mighty Bitcoin is dancing around the $30k line, constantly going over it and then coming back down again. Now many analysts are wondering if Bitcoin will be able to break through the key psychological level of $35,000 this month, and what that could mean in the long term for DeFi as a whole – including startups like HedgeUp (HDUP).
Bitcoin price action and the halving
Over the years, the cryptocurrency market has experienced various events that have caused significant price movements.
One of these events is the Bitcoin halving, where the mining reward for validating transactions on the Bitcoin network is cut in half.
The next halving is expected to occur in the spring of 2024.
But that’s a year away!
Yes, the halving is a year away. And that shouldn’t explain the current price action, right?
It definitely does. But why?
There are a few reasons, some of which are psychological. The halving occurs every four years. So it’s a celebration in a way, as BTC is a finite asset.
There is only a set amount and every four or so years, the amount extracted by miners is cut, thus increasing value in theory. Imagine if the amount of gold mined was cut in half every four years. Gold would be incredibly expensive in a short time, right?
Another factor is what the crypto community calls “hopium”.
It’s a word used to describe the optimistic mindset of believers in the potential of cryptocurrency. While some may see the ups and downs of the market as a reason to give up, those who subscribe to hopium hold fast to the belief that this new form of economy can change the world.
The term may sound playful, but it’s a deeply rooted sentiment that surrounds the Bitcoin (BTC) community.
So when the price of BTC starts to recover, the hopium kicks in and people start to flood the market again, faith restored in DeFi.
The impact on HedgeUp (HDUP)
When Bitcoin (BTC) goes up, every other token in DeFi also tends to go up. Hopium is contagious that way.
HedgeUp (HDUP) is a first-of-its-kind NFT marketplace with a big vision and a DeFi token with solid tokenomics. As the launch slowly draws near, a BTC price burst could be a catalyst to make the HedgeUp (HDUP) token explode in value.
Some experts are predicting 30x gains fairly fast, even if BTC remains stagnant. HedgeUp (HDUP) is currently in presale and planning to launch soon.
Conclusion
Despite the current crab trend in Bitcoin (BTC) prices, many factors could lead to a price increase this month, such as psychological triggers associated with halving events and ‘hopium’ sentiment among crypto believers.
If Bitcoin (BTC) does reach $35k then it could be an exciting time for other DeFi tokens like HedgeUp (HDUP), which has solid tokenomics and may experience 30x gains even if Bitcoin (BTC) remains stagnant.
Links below for more information about HedgeUp (HDUP) presale:
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Source: https://coinpedia.org/press-release/btc-price-analysis-will-btc-touch-the-35000-mark-in-may-analyst-explain-pros-cons/