The Bitcoin halving takes place approximately every four years and is a built-in mechanism to slow down the process of creating new BTC so that the last one will be mined over a hundred years from now, even though more than 19.6 million are already in existence.
When the production speed is reduced, while the demand for the asset remains the same or increases, in theory, its price should rise. So far, the three previous BTC halvings have indeed served as the catalysts for upcoming bull runs, but not only for the primary cryptocurrency, as the entire market has followed suit. Will that be the case now, and will it impact the two largest meme coins? Perplexity answers.
Aside from Bitcoin tapping a new all-time high in early March, the current bull cycle has been primarily driven by meme coins. The two largest ones – DOGE and SHIB – have been at the forefront, but the niche also saw the emergence of numerous new ones that captured investors’ attention rather quickly.
Nevertheless, we will focus on Dogecoin and Shiba Inu. The former is currently sitting at 8th spot in terms of market cap, while its self-proclaimed killer is four places behind amid an ongoing race for meme coin leadership.
The popular chatbot believes the halving, which should take place on April 19, “could lead to a sustainable increase in Bitcoin’s price due to its high demand.” Although the asset has retraced by double digits since its March ATH, this could actually be good news – find out why here.
In terms of potential gains for SHIB and DOGE, the ChatGPT rival said:
“Since Shiba Inu (SHIB) and Dogecoin (DOGE) often move in tandem with Bitcoin, they could potentially spike in price during the Bitcoin halving event.”
When it comes down to Dogecoin, there have been many predictions that the OG meme coin could jump to as high as $1 during this cycle, which would mean a 5x surge from its current position.
The increasing burn rate and the growing transactions number on Shibarium, on the other hand, have been among the bullish developments for the Shiba Inu ecosystem. As such, SHIB predictions indicate a more modest 40% increase in the next few weeks and up to 300% in the following months.
Still, Perplexity warned that the crypto market is quite volatile. Moreover, meme coins are known for even more enhanced price fluctuations, which should make investors wary before dealing with them.
In any case, the Bitcoin halving is among the most important events for the crypto industry, so if you want to find one more about it, you can check our video below.
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