Experts Advise on Investment Strategy for Bitcoin Halving

Cryptocurrency’s cyclical market movements are driven by regular Bitcoin (BTC) halving. As the crypto winter comes to an end, investors awaiting the next bull market ponder their next investment.

BeInCrypto asked seasoned experts to share their investment theses. Here are the cryptocurrencies they advise buying to exploit the next bull market cycle. 

When Is the Next Bull Market?

The crypto community argues that Bitcoin’s halving triggers market growth cycles. Each halving results in halving the rate at which Bitcoins are mined.

Bitcoin has a limited supply of 21 million coins. Investors presume the next halving in spring 2024 will start a new market growth cycle.

Why and How Does Halving Trigger a Growth Cycle?

Bitcoin and the wider digital asset market grow because for the following reasons:

• Halving divides Bitcoin’s emission rate by a factor of two. At the same time, the demand for cryptocurrency remains the same. This artificially-created scarcity increases the prices of all cryptocurrencies.
• BTC has already experienced halvings in 2012, 2016, and 2022. Bitcoin’s previous record highs post-halving bode have made investors optimistic about next year’s spring halving. Positive pre-halving sentiment may spur an initial market surge.
• Bitcoin is the largest cryptocurrency by market capitalization. Altcoins’ consistent BTC tracking suggests they will follow the asset into the bull territory. 

Now, let’s dive into the theory. The Bitcoin halving occurs every 210,000 mined blocks on the Bitcoin blockchain. This period is roughly equivalent to once every four years. Previous halvings have grown the entire cryptocurrency market. Bitcoin’s rainbow chart intuitively illustrates the trend:

The graph can be interpreted as follows:

• The blue vertical lines are halving dates. The rightmost line suggests the next halving date assuming the BTC network speed does not significantly change in 2024.
• The black curve tracks Bitcoin’s price changes in relation to the halving period.
• The rainbow’s colors identify whether Bitcoin is overvalued or undervalued. Investors judge a coin’s long-term investment potential by the proximity of its price to the rainbow’s blue edge. Conversely, a crypto asset may be regarded as overvalued the closer its price is to the red border.

Which Cryptocurrency to Buy: Expert Opinions

Nikolay Zhuralev, CEO of CFA.RF, told BeInCrypto his opinion on which cryptocurrency will give investors the highest returns around the Bitcoin halving. He said that the basis of the investment portfolio should be BTC and Ethereum (ETH). He wrote:

“By holding Bitcoin and Ethereum, you get a balanced risk-return ratio. So, I recommend other cryptocurrencies only when you’re looking for profit without paying attention to risk.”

Our expert also spoke about the reasons for his choice.

• Bitcoin will be the main beneficiary of halving. BTC’s standard deviation is lower than most other cryptocurrencies, except stablecoins. Bitcoin is the best choice in the current environment, as its positive returns are highly likely if you decide to hold BTC for at least a few years.
• Ethereum is the second-largest cryptocurrency by market capitalization and deserves attention. Although ETH is more volatile than BTC, it is a well-established project that has survived several crypto market cycles and even surpassed Bitcoin once. The project is at the forefront of Web3 and blockchain technology development. However, the most significant advantage of Ethereum is that thousands of cryptocurrency projects require ETH to pay for gas.

Another cryptocurrency worth buying, according to Nikolay Zhuravlev, is Loopring (LRC). It solves the issue of Ethereum network congestion. In our conversation, he believes that amid the anticipated increase in ETH load during the next growth cycle, “Loopring will offer disproportionately higher returns than the rest of the market.”

Don’t Forget Bitcoin

Bitcoin is also favored by Yaroslav Ivanov, the strategic director at ALTA – Blockchain Accelerator & DLT Mass Adoption. Like Nikolai Zhuravlev, he emphasized Bitcoin primarily. In response to which cryptocurrency to buy before the 2024 halving, he stated:

“The majority of the portfolio should be in Bitcoin. The middle part should be in Ethereum, and other coins such as Waves, XRP, Dash, and Mana should not exceed 15% of the total [investment]. It’s also worth looking at coins with high potential, such as Aptos, Zilliqa, and others backed by serious funds with a long-term corporate strategy.”

Dmitry Noskov, a cryptocurrency expert at StormGain, joined the discussion. Here’s how he answered the question of which cryptocurrency to buy to profit from the next growth cycle:

“Bitcoin, in anticipation of the 2024 halving, may also pull up other popular currencies. So, if we highlight other coins that have a chance for growth in the near future besides Bitcoin, it is primarily Ethereum, which momentarily crossed the $2,000 mark, and Litecoin, which grew above $90 and is aiming for the $100 level.”

In Summary

All three experts gave similar advice. According to our respondents, the focus should be on BTC. Ethereum comes in second place. The market capitalization leaders should make up the largest part of the investment portfolio.

Among other cryptocurrencies that can be profitable during the market growth period following Bitcoin’s halving, our respondents highlighted the following:

• Litecoin (LTC)
• Aptos (APT)
• Zilliqa (ZIL)
• Waves (WAVES)
• Ripple XRP
• Dash (DASH)
• Decentraland (MANA)
• Loopring (LRC)

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.