Altcoins Could Get Crushed By BTC Halving Volatility, Here’s Why

Tony "The Bull" Severino

Last Updated: April 27, 2020 4:00 pm

2 mins read

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Bitcoin‘s halving is in less than three weeks away, and the biggest event in crypto has everyone talking and speculating once again. But while things are potentially looking bullish for Bitcoin, altcoins could get crushed during the explosive volatility expected when the BTC block reward halves in just a couple short weeks from now.

Here’s why altcoins may suffer amidst the upcoming BTC block reward halving.

BTC Halving: Upcoming Bitcoin Volatility Could Crush Altcoins

Bitcoin‘s halving is at this point just days away – an incredibly important event for the cryptocurrency and a true make it or break it a moment.

For the last few years, crypto investors have been holding out hope that history repeats, and just like the last two times it occurred, the Bitcoin halving caused a dramatic bull run causing BTC to reach sky-high prices.

The last time around, Bitcoin rose to over $20,000 and made the asset a household name, and put it on the same pedestal next to stocks, commodities, forex, and more as a viable financial asset that investors and traders both can look to for profits.

Altcoins, however, didn’t make the cut. This smaller subset of the cryptocurrency asset class lacks the same acceptance and adoption as Bitcoin and is far more speculative in nature.

Altcoins are also highly susceptible to BTC price movements.

Take the 2019 Bitcoin bull run for example. At the start of the year, it was altcoins like Litecoin that kicked off the rally in crypto markets, but later these assets were annihilated as Bitcoin price exploded from $3,200 to as high as $14,000.

Altcoin investors capitulated en masse, as looming concerns over a changing regulatory landscape began to unfold. Bitcoin’s acceptance by regulators made it the one crypto asset that investors could trust, and the capital leaving altcoins into Bitcoin further caused the number one cryptocurrency price to balloon.

The same could happen once again if Bitcoin price takes off with the halving ahead, and rockets to new highs. Altcoins, that have continued to lag behind the first-ever cryptocurrency, could further be left in Bitcoin’s dust.

Related Reading | This Class of Once Hyped Altcoins Is Headed To Zero

Alternatively, Bitcoin could suffer an enormous crash if miners suddenly panic sell and dump their BTC rewards, closing up shop due to the suddenly doubled cost of production. Crashing Bitcoin prices also doesn’t bode well for altcoins, either, and could cause them to bleed out.

So you think #BTC will pump hard into the halving but you also think altszn is on the horizon?

I hate to break it to ya, but it's one or the other…

BTC volatility = Alts getting crushed

— Posty (@PostyXBT) April 27, 2020

The main time that altcoins shine is when Bitcoin is trending sideways and lacks volatility. Since altcoins get crushed whether BTC moves up or down, any volatility ahead won’t be good for the alternative crypto assets.

Featured image from Pixabay

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.