How The Halving Could Impact ETH Price Action
cryptolove last edited by
Next week bitcoin will be experiencing its third halving event. With this in mind, price is key. This event will undoubtedly set off a lot of knock on effects throughout the industry and could potentially have an impact on alternative cryptocurrencies such as XRP and ETH.
With bitcoin having a massive dominance in the market, this highly anticipated event will more than likely have an impact on the smaller coins of the industry. This includes ETH.
As ETH moves away from bitcoin, many analysts are surprised. New data indicates that the price of the token has been dropping over the past two weeks as a percentage of bitcoin. Last week when the leading crypto currency surged, the two top currencies were leaving each other behind.
As per AMB crypto:
“Looking ahead post the halving, the expected volatility of the two cryptocurrencies, measured by the pricing of their respective Options contracts, show similar movements. In fact, the realized volatility [historic] of the coins peaked following the events of Black Thursday and stood firm, while the implied volatility dropped significantly.”
With many predicting that the volatility of the two assets will be high during the next week or two, many alternative currencies may follow suit in bitcoin.
The halving is one of the most anticipated events in the industry to date. Since 2017 not much has happened in the crypto space but this event could change that for the better.