Bitcoin Sideways, These Are Three Potential Crypto Assets Move Positively After Halfing

Bitcoin's Post-Halving Slump: Temporary Stagnation or Enduring Trend?

Amidst the recent price correction that saw Bitcoin (BTC) plunge by 9.7% to $57,790 (Rp936 million) on May 2, 2024, market analysts are grappling with the question of whether this dip signals a prolonged stagnation or merely a temporary setback.

Historically, Bitcoin's price tends to experience a period of sideways movement or stagnation after a halving event, where the supply of new bitcoins is reduced by 50%. However, Fahmi Almuttaqin, a Crypto Analyst from Reku, believes that the market recovery and positive potential for the crypto market in the second quarter (Q2) remain strong.

"The Bitcoin halving moment does not automatically trigger a price surge," Almuttaqin explained. "In previous halvings, Bitcoin's price movements have varied."

According to Almuttaqin, Bitcoin's true rally tends to commence between 1 to 5 months after the halving event. This observation suggests that the current stagnation may be a temporary condition.

Despite the current price dip, Reku's Crypto Outlook Quarter-II report highlights several narratives that could potentially drive market growth in the coming months.

AI Narrative

The integration of artificial intelligence (AI) innovation into the blockchain industry is gaining traction and attracting market attention. Increased investments from institutional players into AI-based applications and technology developers are lending credibility to projects in this sector.

DePIN Narrative

DePIN (Decentralized Physical Infrastructure Network) refers to projects that aim to bridge the gap between real-world data operations, management, and storage with blockchain technology, making them more accessible and transparent.

"The DePIN narrative has the potential to experience significant growth as investors recognize the growing importance of decentralization and improved data infrastructure in blockchain applications," Almuttaqin said.

Restaking Narrative

Restaking, particularly for Ethereum (ETH), is a novel concept that allows investors to restake the same crypto assets on multiple platforms, potentially increasing their rewards.

"The potential for increased staking rewards for ETH holders could make it a more attractive asset," Almuttaqin noted.

As a result, crypto assets like Ethereum (ETH), Ether.Fi (ETHFI), Altlayer (ALT), Pedle (PENDLE), and LidoDAO (LDO) are among those that could benefit from the Restaking narrative.

The crypto market has historically demonstrated resilience and adaptability, and while the current dip in Bitcoin's price may raise concerns, it is crucial to recognize that the long-term potential for growth remains strong. The narratives highlighted by Reku, coupled with the historical pattern of Bitcoin's price movements post-halving, provide reasons for optimism in the coming months.