- Bitcoin halving will occur on April 22 at 2:55 UTC, in around 20 days.
- BRC 20 tokens, assets that use Bitcoin as a sidechain, and ecosystem tokens could benefit from BTC gains.
- Stacks, Core, RSK Infrastructure Framework, and Syscoin – which use Bitcoin as their base layer – could rally as the halving narrative gets popular.
Bitcoin’s (BTC) halving, which is expected to occur in April, is typically considered a positive catalyst for BTC prices as historically the asset’s price has peaked within six to twelve months after the event. If history is set to repeat, the upcoming halving event opens doors to gains in beta plays, tokens built on Bitcoin sidechains, BTC ecosystem-based assets, and BRC20 amid rising demand among traders.
Bitcoin halving could fuel gains in these assets
The Bitcoin halving countdown on nicehash.com shows that within less than 21 days, the reward for mining a BTC block will be slashed in half. This is considered a key event that marks Bitcoin market cycles, with peak gains expected within six to twelve months of the halving.
The ongoing market cycle has seen several beta plays emerge, paving the way for traders to benefit from the upcoming halving through other assets apart from Bitcoin:
- BRC20 tokens: ORDI (ORDI), Ordinals Sats (SATS), Multibit (MUBI), and Ordiswap (ORDS).
- Bitcoin as base layer or BTC sidechains: Stacks (STX), Core (CORE), RSK Infrastructure Framework (RIF), and Syscoin (SYS).
- Bitcoin-related assets: Bitcoin Cash (BCH), Bitcoin SV (BSV).
BRC20 (Bitcoin Request for Comment) is an experimental token standard in which fungible tokens are minted on the Bitcoin blockchain, similar to the ERC-20 tokens on the Ethereum blockchain. Data from CoinGecko shows weekly gains between 3% and 16% in BRC20 tokens ahead of the upcoming halving.
BRC20 tokens and weekly gains
The Stacks network is Bitcoin’s layer for smart contracts. It is built on BTC, deriving its blockchain’s security, reliability and decentralized nature and using its Proof of Transfer consensus mechanism to incentivize miners in its network. STX price is up nearly 5% on the weekly time frame.
Similarly, CORE is the token of a blockchain that builds on Bitcoin’s proof of work network and uses a delegated proof of stake consensus for its chain and users. CORE has posted nearly 250% weekly and 62% daily gains, as seen on CoinGecko.
RSK is a Bitcoin sidechain, and SYS is a layer 1 chain that combines BTC’s consensus mechanism and Ethereum’s smart contracts. RSK and SYS prices climbed nearly 16% and 4% in the past week.
Bitcoin ecosystem tokens like BCH and BSV have seen a surge in their prices, adding 12% and 2% on the daily time frame, respectively. With the block reward halving less than 21 days away, traders can expect gains in Bitcoin and related assets, although this largely depends on the BTC price trend.
A sharp correction in Bitcoin price, namely a drop to key support at $65,000, could wipe out gains in beta plays. At the time of writing, BTC price is at $69,489, nearly 5% below the year-to-date peak and an all-time high of $73,777 from March 14.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AAVE proposes a slew of upgrades and expansions in plan for 2030
Aave has proposed a Unified Liquidity Layer, V4, and solutions to enhance and compete with zero-knowledge networks in its plan for 2030 and beyond. The proposal states that Aave aims to implement its plan together with the community within the next three years.
Top 3 meme coins Dogecoin, Shiba Inu and Bonk: Recovery likely if Bitcoin freefall ends
Meme coins Dogecoin (DOGE), Shiba Inu (SHIB) and Bonk (BONK) look primed for recovery, according to technical indicators, despite the broader crypto market correction prompted by the sharp drop in Bitcoin (BTC) price.
XRP tests $0.52 resistance while XRP Ledger developers propose lending protocol on the blockchain
Ripple has failed to close above $0.52 for five consecutive days, struggling with the sticky resistance. XRP holders digested the news of US Securities and Exchange Commission’s response to Ripple in its filing that addressed the issue of “expert testimony.”
Pepe whales buying spree could trigger 55% rally Premium
Pepe price shows signs of a potential comeback as it retest the a declining resistance level. A successful breakout could kick-start a 56% move to the upside as whales continue to accumulate on dips.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.