Analyst tips Bitcoin dominance to rise before halving

With the highly anticipated Bitcoin halving being just one month away, analysts are beginning to speculate on the impact it will have on the price of all cryptocurrencies.

The two previous block reward halvings came before a series of cryptocurrency bull markets that led Bitcoin to consecutive all-time highs.

And this time around will be no different according to leading eToro analyst Simon Peters, who told Coin Rivet: “With the third bitcoin reward reduction approaching, investors seem to be looking to acquire more units at current low prices to hold for the long term. As with previous halvings, we expect the price to go on an extended bull run following the event in May.”

Miners’ rewards for Bitcoin will be slashed from 12.5BTC per block to 6.25BTC per block during the first two weeks of May, with the theory claiming that a reduction in supply may cause the price to effectively double.

This will also impact a number of the top altcoins, many of which remain intrinsically linked to Bitcoin in terms of price action.

In a few weeks Bitcoin surged to an all-time high of $20,000 in December 2017, altcoins began to take the market by storm as the majority of them printed astonishing gains in the first week of January.

Peters believes that Bitcoin dominance will continue to rise as the halving edges closer, which means altcoin gains will have to wait until the end of May and start of June.

“Whilst previously it seemed that bitcoin’s dominance in the cryptoasset sector was waning, in February bitcoin’s market cap stood at 61% of all cryptoassets. The recent trading activity has seen this increase to 65%.” He added.

“In the run up to the halving, we could see that number hit as high as 68%, where we were at the beginning of this year.”

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