Halving Bitcoin: Ethereum's great challenge for digital supremacy!

As we approach the much-anticipated Bitcoin Halving day, all eyes are on the queen of cryptos: its ever-changing price (which could well reach a new all-time high), the upcoming changes in the BTC mining landscape, and much more. As this highly anticipated event draws closer, it’s time to take a closer look at bitcoin, and more specifically at its volatility.

The volatile dance of Bitcoin: Ether takes the reins

In April, many observers expect cryptocurrencies, under the aegis of their star Bitcoin, to write their own story. For the crypto of Satoshi Nakamoto, the $77,000 mark seems within reach. However, don’t be surprised if other altcoins such as Solana, Fantom, or Ethereum steal the spotlight during this same period.

According to CoinDesk, Bitcoin, traditionally considered a stable haven in the tumultuous world of cryptocurrencies, seems to be losing its balance. Recently, it has been more turbulent than Ether, raising questions about its reliability as a reserve asset.

Data from Kaiko, a Parisian company, reveals a historical volatility gap of nearly 10 percentage points between BTC and ETH, the largest in a year. This once negligible gap now raises doubts about the consistency of Bitcoin.

The decision by the SEC to approve several bitcoin ETFs has fueled investor interest but also introduced increased volatility into the market. Meanwhile, the lack of approval for an Ether ETF has deterred traders, further accentuating the gap between the two cryptocurrencies.

The imminent prospect of the halving of the block reward in the Bitcoin blockchain, or Bitcoin Halving, adds an additional layer of uncertainty. This reduction could cut miner revenues in half, currently estimated at $26 billion a year according to ByteTree.

The great game of Bitcoin Halving: Traders on the razor’s edge

As the eagerly awaited “Halving” of Bitcoin draws near, excitement is at its peak. This halving of the pace of supply expansion could well create an imbalance favoring a price surge, at least according to the general consensus. The previous “halvings,” in November 2012, July 2016, and May 2020, were followed by spectacular rises in Bitcoin’s price, thus setting new records over a period of 12 to 18 months.

But this time it’s different. Bitcoin has already surpassed its previous bullish peak, crossing $69,000 a few weeks before the event. A situation that adds an extra dose of excitement for traders. Greg Magadini, chief of derivatives products at Amberdata, however, warns that the current euphoria could give way to a “Sell-the-News” phase after the event.

He believes the market is positioned in a very extended manner, which could lead to sudden moves. Bitcoin options also reflect this nervousness, with an interesting structure showing high volatility before the expiration on April 26.

In this great game of Halving, where the stakes are high and the forecasts uncertain, traders are bracing for a tumultuous period where each market movement could be decisive. The implied volatility paints a landscape where roller coasters are commonplace, making this a crucial time for cryptocurrency investors.