Bitcoin halving is imminent! How to seize the opportunity to amplify gains?
The Bitcoin halving is scheduled for Saturday, April 20, but holding Bitcoin isn’t an exciting activity for crypto enthusiasts! What can you do ahead of this event to gain high-beta exposure to BTC and potentially capture more upside (or downside)?
Historically, Bitcoin halving has often been accompanied by a significant increase in the price of Bitcoin, which has been attributed to a reduction in inflationary block rewards, reducing selling pressure on miners and allowing Bitcoin to enter price discovery mode.
Many crypto traders expect a similar outcome from this year’s halving, but they are not satisfied with BTC’s relatively lackluster returns, for whom high-beta alternatives can increase volatility while providing the opportunity to continue holding spot crypto assets, eliminating the complexity of leverage and the risk of liquidation.
For those who have a lot of capital and are willing to hold instruments with less liquidity, investing in popular Bitcoin Ordinals, such as Bitcoin Puppets and NodeMonkes, could bring huge returns if Bitcoin rises after the halving.
Inscription NFTs are priced in BTC, which means that their USD price will rise as the BTC price soars, and the increase in BTC price may attract more investors to buy them to capture the greater upside that comes with price movements.
The new token standard is scheduled to launch on the day of the halving, and has the potential to replace BRC-20 as the chain’s official fungible token standard. However, since it has not yet been officially launched, market enthusiasm may still be in its early stages.
Although the first Runes have not yet been released, traders (and developers) are already trying to capitalize on this wave of hype!
“Runestones” is a collection of 112,000 inscription NFTs created in March, riding on the popularity of Runes not only because of the similar name, but also because its developers promised that holders would receive at least 3 different Runes meme coin airdrops.
Currently, the hottest of the liquidity tokens offering exposure to the bullish Runes is PUPS, a meme coin based on the popular inscription NFT project “Bitcoin Doll”, but the two are not related.
The PUPS are currently based on the BRC-20 standard, but the recent announcement that it will transition to the Runes standard has sent its token price soaring by nearly 100%, which has excited many traders to believe that the token may continue to enjoy the tailwinds after the halving.
Not only is the PUPS token available on the Bitcoin network, but its bridged version has also appeared on the Solana network, which is the undisputed chain of popular meme coin transactions.
Alternatively, some hardcore gamers may choose to stick with the more classic gameplay and prefer to emulate the original OG Bitcoin fungible meme coin – ORDI. Notably, market attention seems to be shifting to newer projects, as evidenced by the fact that ORDI fell more than 40% in April.
Bitcoin is still immature, but for investors who prefer to emulate infrastructure projects with some fundamentals (like the water shovel sellers in the gold rush), Bitcoin Layer 2 solutions (such as Stacks Network (STX)) or bridging infrastructure (such as Multibit (MUBI)) can still be a viable way to capture more of the attention that could flow to Bitcoin after the halving.
While historically, Bitcoin miners’ shares have provided better gains than Bitcoin itself, they can be in trouble as their revenues will be halved after the halving, so it’s best to avoid investing in such stocks before and after the halving.