Renowned crypto analyst Plan B noted that those who trade around Bitcoin halving cycles earn better returns than those who buy and hold.
The trading veteran pointed out that most of the Bitcoin price increases have occurred in the last three halvings. At the same time, BitMEX founder Arthur Hayes pointed out that geopolitical unrest can also fuel the bull market.
Bitcoin Halving: A Strategy to Turn $5 into $130,000
Traders who participated in the crypto market around the Bitcoin halving alone could have seen returns of up to 2,500%.
“Just being in the market in these three areas [Bitcoin halving] “A $5 investment would have increased to $130,000 (purple line) instead of $37,000 buy-and-hold (blue line),” Plan B explained.
Bitcoin halvings, which occur approximately every four years, have historically triggered significant price increases as the rate of new BTC issuance drops by 50%. This scarcity push provides a strategic window for astute investors to capitalize on Bitcoin’s significant returns.
Read more: Bitcoin Halving Cycles and Investment Strategies: What You Should Know
Bitcoin stock-to-flow model. Source: PlanBTC.com
According to Plan B’s stock-to-flow model, traders should buy Bitcoin six months before the halving and sell it 18 months after. This approach aims to leverage Bitcoin’s cyclical patterns to take advantage of significant price increases associated with the Bitcoin halving while avoiding subsequent bear markets.
Bitcoin triumphs in times of geopolitical uncertainty
Additionally, BitMEX founder Arthur Hayes suggested that buying Bitcoin during geopolitical uncertainty and war could be a strategic move for a crypto trader.
According to Hayes, Bitcoin has shown resilience in conflicts such as the Ukraine-Russia war and the Hamas-Israel conflict, outperforming traditional assets such as long-term US Treasury bonds. For comparison, the price of BTC is up 26% since the start of the war in Palestine, while TLT, the long-term US Treasury bond ETF, is up just 3%.
“The smartest trade is a long position in cryptocurrencies. “There is nothing else that has outperformed the rise in central bank balance sheets like crypto,” Hayes said.
Read more: 7 must-have cryptocurrencies for your portfolio before the next bull run
Bitcoin vs TLT returns. Source: Bloomberg
Hayes also noted that Bitcoin’s price action has shown that it is a potential hedge against uncertainties related to geopolitical tensions. Therefore, Bitcoin has been a reliable indicator of the health of the fiat financial system in these situations.
“Bitcoin has proven to be better than bonds in times of war. Even if there is an initial period of weakness, I will buy on dips,” Hayes concluded.
Disclaimer
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