Artículos (5)
Beyond Bitcoin: Trading Altcoins During the BTC Halving Event
<p>The Bitcoin Halving is a momentous event in the world of cryptocurrencies. Occurring every four years, it reduces the reward for mining Bitcoin transactions by half in an effort to control the supply of BTC. This mimics the scarcity-driven value preservation similar to precious metals such as gold and silver.<br /> <br /> The Halving event separates BTC from fiat currencies where central banks and governments can simply print more money and thus subject to inflationary pressure. The mechanism has been known to significantly influence the price of BTC as investors see long-term value in the coin. Learn more about what the Bitcoin Halving Event is here.<br /> <br /> However, the Bitcoin Halving event is not isolated on BTC charts. In the case of Ethereum, for instance, traders and investors have fixed ideas of how much one ETH should be worth against BTC. If BTC gains by X, then ETH also needs to gain by X amount.<br /> <br /> In this article, we’ll discuss the ripple effect of Bitcoin Halving among altcoins, such as Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Binance Coin (BNB).<br /> <br /> As Bitcoin is arguably the most popular cryptocurrency, it’s no wonder that all altcoins have strong ties to it. BTC price movements, such as dumps, regulations and br eaking news, have an influence on altcoins.</p> <h2>Bitcoin Halving event’s effect on Altcoins</h2> <p>The Halving event often triggers speculative activity. The reduced supply post-halving has historically led to price increases, drawing investor attention not only to Bitcoin, but also to altcoins as alternative investment opportunities.<br /> <br /> Bitcoin miners may also shift their attention towards more profitable altcoins as BTC decreases their rewards. This influx affects the mining dynamics, security, and transaction processing speed of an altcoin’s network, increasing its investor appeal and valuation.<br /> <br /> Lastly, the media coverage surrounding the Bitcoin Halving event increases the mass appeal of cryptocurrencies. The heightened public interest attracts new investors, some of which may prefer exploring altcoins over Bitcoin and expanding the cryptocurrency world’s general liquidity.<br /> <br /> Let’s look at the price movements of famous altcoins ETH, XRP, ADA, and BNB during the third Bitcoin Halving event.</p> <h2>Third Halving (May 2020)</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>Coin</td> <td>Feb 2020</td> <td>Mar 2020</td> <td>Apr 2020</td> <td>May 2020</td> <td>Jun 2020</td> <td>Jul 2020</td> <td>Aug 2020</td> </tr> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>ETH</td> <td>$217.43</td> <td>$132.80</td> <td>$206.18</td> <td>$231.69</td> <td>$225.59</td> <td>$346.38</td> <td>$434.06</td> </tr> <tr> <td>XRP</td> <td>$0.21150</td> <td>$0.21150</td> <td>$0.17530</td> <td>$0.25940</td> <td>$0.28110</td> <td>$0.24180</td> <td>$0.23780</td> </tr> <tr> <td>ADA</td> <td>$0.0471</td> <td>$0.0305</td> <td>$0.0474</td> <td>$0.0743</td> <td>$0.0832</td> <td>$0.1390</td> <td>$0.1224</td> </tr> <tr> <td>BNB</td> <td>$19.25</td> <td>$12.55</td> <td>$17.02</td> <td>$17.12</td> <td>$15.41</td> <td>$20.67</td> <td>$23.14</td> </tr> </tbody> </table> <h2>Ethereum (ETH) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>Coin</td> <td>Feb 2020</td> <td>Mar 2020</td> <td>Apr 2020</td> <td>May 2020</td> <td>Jun 2020</td> <td>Jul 2020</td> <td>Aug 2020</td> </tr> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>ETH</td> <td>$217.43</td> <td>$132.80</td> <td>$206.18</td> <td>$231.69</td> <td>$225.59</td> <td>$346.38</td> <td>$434.06</td> </tr> </tbody> </table> <p>Ethereum's price movements around the Bitcoin halving in May 2020 show a significant trend. Before the Halving, ETH experienced a dip in March 2020. It should be noted that this was a global phenomenon. Financial markets crashed due to the imposed lockdowns caused by COVID-19.<br /> <br /> However, as the Halving approached, ETH began to recover, with the price in April bouncing by a whopping 55.26%. Just three months after the Halving, ETH showed a substantial increase in value, averaging $434.06, an 87.35% climb.<br /> <br /> This price movement indicates that Ethereum is considered as a complementary asset to Bitcoin, with its own fundamentals but ultimately, still riding the wave of increased crypto valuation.</p> <h2>Ripple (XRP) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>XRP</td> <td>$0.21150</td> <td>$0.21150</td> <td>$0.17530</td> <td>$0.25940</td> <td>$0.28110</td> <td>$0.24180</td> <td>$0.23780</td> </tr> </tbody> </table> <p>Ripple (XRP) also suffered from the economic uncertainty caused by the COVID-19 lockdowns. There was a steady decrease in price from February to March. However, during the month of the Bitcoin Halving Event, XRP’s price surged by 47.97%, averaging $0.25940 in May.<br /> <br /> Following the event, XRP continued to experience moderate volatility, experiencing an uptick in June before declining in the months after. This pattern suggests that while XRP does react to Bitcoin's Halving event, it also operates under the influence of its own market dynamics and fundamentals.</p> <h2>Cardano (ADA) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>ADA</td> <td>$0.0471</td> <td>$0.0305</td> <td>$0.0474</td> <td>$0.0743</td> <td>$0.0832</td> <td>$0.1390</td> <td>$0.1224</td> </tr> </tbody> </table> <p>Cardano (ADA) had a positive response around the third Bitcoin Halving event. Before the event, ADA was relatively stable, averaging $0.0471 and $0.0474. However, in the immediate aftermath of the Halving, ADA’s price significantly jumped by 56.75%.<br /> <br /> ADA’s positive correlation with the Bitcoin Halving event continued in the following months, with ADA averaging $0.1224, a 158.23% jump just three months after. This strong performance could indicate increased investor confidence in alternative cryptocurrencies and a search for potential high-growth assets within the crypto space.</p> <h2>Binance Coin (BNB) and Bitcoin Halving</h2> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>BTC</td> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,610.55</td> <td>$11,653.75</td> </tr> <tr> <td>BNB</td> <td>$19.25</td> <td>$12.55</td> <td>$17.02</td> <td>$17.12</td> <td>$15.41</td> <td>$20.67</td> <td>$23.14</td> </tr> </tbody> </table> <p>Binance Coin’s performance around the Bitcoin Halving event shows an interesting trend. BNB started strong with $19.25 in February before experiencing a market downturn in March. By April, it was in a recovery phase before dropping again in price after the Halving.<br /> <br /> However, two months after the Halving, there was a notable rise with July and August showcasing then all-time highs. This upward trajectory suggests that BNB, with its ties to the Binance exchange ecosystem, benefits from the increased trading activity and investor interest that often accompany Bitcoin halving events.<br /> <br /> The role of market sentiment cannot be understated, especially in the cryptocurrency industry. As Bitcoin's Halving generates media buzz and fosters discussions about scarcity and value, investor behaviour leans towards optimism.<br /> <br /> This sentiment is then mirrored in the altcoin markets, where investors, expecting a similar scarcity-induced appreciation, may turn their attention to altcoins like ETH, XRP, ADA, and BNB. The market historically witnesses a surge in trading volumes and, consequently, prices across a range of cryptocurrencies, as investors diversify their portfolios in search of gains.<br /> <br /> It is important, however, to note that while there is a correlation, it is not a direct causation. Altcoins are influenced by their own unique set of factors, and Bitcoin's halving is just one of them. Each altcoin has its unique ecosystem and fundamentals that play a significant role in its price determination. For instance, Ethereum's shift to Ethereum 2.0 and its proof-of-stake model is an intrinsic value proposition that can affect its price independently of Bitcoin's Halving events.<br /> <br /> Access a wide range of cryptocurrency coins when you sign up with ThinkMarkets. Conquer the market and identify trading opportunities with our advanced charting interface, powerful tools, and exclusive features now!</p>
Decoding Bitcoin Halvings: A Historical Look at Price Patterns
<p paraeid="{be5484a1-04bf-49d6-9422-2c52efe2209d}{207}" paraid="521337786">The Bitcoin Halving event is a scheduled protocol that occurs every 4 years in the Bitcoin blockchain system that cuts a miner’s rewards by half, effectively controlling the supply inflation. </p> <p paraeid="{be5484a1-04bf-49d6-9422-2c52efe2209d}{217}" paraid="1738663072">The first three Bitcoin Halving events had a significant impact on the cryptocurrency market’s history. If you’re looking to trade the 2024 Bitcoin Halving event, it’s crucial to look at historical data and identify any similar patterns. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>Halving Event</td> <td>Date</td> <td>Block Reward Before Halving</td> <td>Block Reward After Halving</td> </tr> <tr> <td>1st Halving</td> <td>November 2012</td> <td>50 BTC</td> <td>25 BTC</td> </tr> <tr> <td>2nd Halving</td> <td>July 2016</td> <td>25 BTC</td> <td>12.5 BTC</td> </tr> <tr> <td>3rd Halving</td> <td>May 2020</td> <td>12.5 BTC</td> <td>6.25 BTC</td> </tr> </tbody> </table> <p paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{134}" paraid="2060973884">Here, we’ve outlined the historical price movements of Bitcoin. We’ll be looking at the average closing price of BTC 3 months before and after the Halving event. </p> <p paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{160}" paraid="1748032745">All data is from StatMuse. </p> <h2 paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{170}" paraid="1354479776">First Halving (November 2012) </h2> <p paraeid="{2e203898-fe0d-4a35-b4c3-e6f9004cca0d}{180}" paraid="1722657036">Leading up to the first Halving, Bitcoin's price saw gradual increases. In the months that followed, the price experienced significant growth, marking the beginning of a prolonged bullish phase. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>August 2012</td> <td>September 2012</td> <td>October 2012</td> <td>November 2012</td> <td>December 2012</td> <td>January 2013</td> <td>February 2013</td> </tr> <tr> <td>$10.91</td> <td>$12.36</td> <td>$11.77</td> <td>$12.45</td> <td>$13.33</td> <td>$15.38</td> <td>$25.58</td> </tr> <tr> </tr> </tbody> </table> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{43}" paraid="930690934">The initial Halving event set a precedent for how Bitcoin's price could respond to reduced block rewards. In the short term, volatility was evident, with price fluctuations leading up to and immediately following the Halving. </p> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{69}" paraid="2110744758">However, the long-term effect was a substantial increase in Bitcoin's price. This trend was attributed to the reduced rate of new Bitcoin entering the market, creating a scarcity that, alongside growing awareness and adoption of Bitcoin, drove prices up significantly over the following year. </p> <h2 paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{79}" paraid="1374391257">Second Halving (July 2016) </h2> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{93}" paraid="161665470">The period before the second Halving was characterised by steady growth. Post-Halving, the price initially remained stable before embarking on a notable upward trajectory, eventually leading to unprecedented highs in late 2017. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>April 2016</td> <td>May 2016</td> <td>June 2016</td> <td>July 2016</td> <td>August 2016</td> <td>September 2016</td> <td>October 2016</td> </tr> <tr> <td>$448.32</td> <td>$461.95</td> <td>$642.87</td> <td>$661.36</td> <td>$579.59</td> <td>$605.85</td> <td>$700.97</td> </tr> <tr> </tr> </tbody> </table> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{219}" paraid="800232351">Similar to the first, the second Halving event was followed by a period of short-term volatility. However, the long-term trend was overwhelmingly positive. The year following the Halving saw a remarkable bull run, culminating in a then-all-time high towards the end of 2017 ($4,006.03). </p> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{231}" paraid="1433194142">This surge was fueled by increased investor interest, the growing utility of Bitcoin, and broader market speculation. </p> <h2 paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{237}" paraid="254152464">Third Halving (May 2020) </h2> <p paraeid="{2a92c082-d29a-4079-9ac3-c5737cf51b6b}{251}" paraid="648731874">Prior to the third Halving, Bitcoin's price was recovering from a market downturn, presumably due to the COVID lockdowns. Following the Halving, the price stabilised and then surged, contributing to a bull market that peaked in early 2021. </p> <style type="text/css">table { border-collapse: collapse; width: 100%; } td, th { border: 1px solid #dddddd; text-align: left; padding: 8px; } tr:nth-child(even) { background-color: #dddddd; } </style> <table> <tbody> <tr> <td>February 2020</td> <td>March 2020</td> <td>April 2020</td> <td>May 2020</td> <td>June 2020</td> <td>July 2020</td> <td>August 2020</td> </tr> <tr> <td>$9,663.64</td> <td>$6,884.03</td> <td>$7,240.84</td> <td>$9,268.51</td> <td>$9,501.01</td> <td>$9,501.01</td> <td>$11,653.75</td> </tr> <tr> </tr> </tbody> </table> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{134}" paraid="894512290">The most recent Halving event occurred during a year marked by global economic uncertainty caused by the COVID-19 virus. Despite initial concerns, Bitcoin's price not only remained stable but also began a significant upward trend in the months following the Halving. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{148}" paraid="851095680">This growth continued into 2021, reaching new all-time highs, with BTC peaking at $69k. The third Halving solidified the notion that such events are a precursor to bullish market cycles for Bitcoin, driven by a combination of scarcity and increasing demand. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{156}" paraid="795444340">These analyses highlight a pattern of increasing interest and investment in Bitcoin around Halving events, often resulting in significant price movements. Market sentiment and investor behaviour play critical roles in shaping the price movements of Bitcoin around Halving events. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{184}" paraid="1273263002">Each Halving has been accompanied by a mix of speculative anticipation and strategic investment, influencing short-term volatility and long-term price trends. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{194}" paraid="1905781713">In conclusion, the last three Halving events have demonstrated a pattern of volatility followed by a long-term bullish trend. It’s essential that traders looking to follow the Bitcoin Halving event do extensive market research before opening short or long positions. </p> <p paraeid="{3fd6ec28-72e1-4810-a40d-75944d1a1e7a}{210}" paraid="438273659">Trade the 2024 Bitcoin Halving Event with a safe and secure broker now. Experience 24/7 trading, instant execution, and high leverage. Portal.thinkmarkets.com </p>
Foreign policy and forex: how US presidential elections influence global currency markets
<p>Every four years, the United States gears up for its presidential elections, with the whole world waiting in baited anticipation. Traders and investors across the globe closely monitor campaign trails, proposed policies, and public polls, not just for political curiosity, but for clues on how the elections and its eventual winner would affect the global financial markets.<br /> <br /> As the President of the United States, whoever wins can reshape the global economic landscape opening up opportunities for traders. In this article, we’ll go through how US presidential elections can influence the forex market.<br /> <br /> US foreign policy decisions, often significantly influenced by the outcome of presidential elections, can have far-reaching effects on global economic relations, trade agreements, and geopolitical stability. These factors collectively play a crucial role in defining the strength and movement of major currencies, including the US dollar.<br /> <br /> For forex traders, it is extremely important to stay up to date with the news during election years. Historically speaking, the run-up towards the US elections have led to major price swings in currency pairs, such as EUR/USD, GBP/USD, and USD/JPY.</p> <h2>Historical impact of the US presidential elections on forex pairs</h2> <p>While historical data is not a sure guarantee that the market will move the same way, it is likely that prior circumstances will cause the same price movements. It’s important to note that the price movements of currency pairs are caused by the accumulation of a multitude of factors, with the US presidential elections being one of the major reasons.<br /> <br /> Using EUR/USD and USD/JPY as examples, we’ll look at the price movements in November 2016 and 2020, the pivotal month of the US presidential elections.</p> <h2>EUR/USD 2016</h2> <p>This pair often reacts to shifts in US-EU relations. Trade policies that lean towards protectionism or changes in NATO funding have historically caused volatility. Public sentiment on the candidate that’s favoured to win, and their policies have led to fluctuations in this pair as traders speculated on the future of US-EU economic relations.<br /> <br /> <img alt="" src="/getmedia/037fbef6-8aa1-459e-803c-53ea783ca2df/market-events-fereign-policy-and-forex-chart-article-image.jpg" style="text-align: center;" /></p> <p style="text-align: center;">November 1-30, 2016</p> <p>Let’s look at the price movements of EUR/USD in November 2016, when Donald Trump won with 304 votes as opposed to the 227 votes for the Democrat Hillary Clinton. The price of EUR/USD slipped from 1.1292 to 1.0515, showing a massive 7.4% decrease.<br /> <br /> Following Trump's victory over Clinton, there was an immediate weakening of the Euro and a strengthening of the US dollar. This can be attributed to various factors influenced by the election results, such as: </p> <ul> <li>Trump's victory added to the political uncertainty in the Eurozone. This uncertainty was expected to slow Eurozone growth and complicate the job of the European Central Bank (ECB), thereby undermining the Euro</li> <li>Trump's fiscal stimulus agenda, which proposed increasing government spending and significant tax cuts, particularly reducing corporate tax rates, was expected to alter the competitiveness of American businesses</li> <li>Trump's pledge to implement tariffs on imports was likely to lower the volume of imports into the US, supporting the US dollar’s strength. Additionally, any reduction in immigration could impact remittances abroad</li> <li>With Trump’s victory, experts expected the Fed to take a hawkish stance and hike interest rates in December 2016</li> </ul> <p> </p> <h2>EUR/USD 2020</h2> <p><br /> <img alt="" src="/getmedia/784d6b87-ae2d-44b4-999d-fbe3fa37240f/market-events-fereign-policy-and-forex-chart2-article-image.jpg" style="text-align: center;" /></p> <p style="text-align: center;">November 1 – 30, 2020</p> <p>In November 2020, Joseph Biden Jr. won the quadrennial presidential election. Biden's in the 2020 US presidential election was seen as a positive development for emerging markets and led to a weakening of the US dollar against these currencies. The market's reaction was influenced by expectations of normalised trade policies, improved global growth prospects, and uncertainties regarding future fiscal policies in the US.<br /> <br /> In the span of 5 weeks, the price of EUR/USD rose by 4.87%, from 1.1602 to 1.2167. Several reasons caused this reaction, including the factors below:</p> <ul> <li>The clarity that emerged with Biden's win improved global market sentiment. There were high expectations of US foreign policy and trade relations stabilising, easing tensions and boosting global economy. Wall Street had a strong performance during this period, marking its best week since early April at the time</li> <li>Biden's presidency was anticipated to mark a significant shift from the Trump administration's approach, especially in terms of foreign policy and trade relations. The prospect of a cooldown in trade tensions, particularly with China, was viewed positively by the markets</li> <li>The anticipation of reduced trade tensions under Biden's administration led to increased capital flow back into emerging markets. The MSCI Emerging Markets Index (EEM), for instance, closed at its highest point in over two years </li> <li>Biden's win raised expectations for fiscal stimulus, which was passed to support economic recovery in the US</li> </ul> <h2>USD/JPY 2016</h2> <p><br /> <img alt="" src="/getmedia/ad99ea26-7bf7-44ea-ae13-11618e18ec0f/market-events-fereign-policy-and-forex-chart3-article-image.jpg" style="text-align: center;" /><br /> <br /> In November 2016, USD/JPY rose from 101.75 to 118.691, recording a massive 17.31% jump in just one month. This major rise could be attributed to several factors, although experts note that Donald Trump’s victory was a key driver. Here are some reasons why the USD was expected to strengthen following Trump’s win:</p> <ul> <li>Trump’s proposed policies during the 2016 debates were considered more likely to lead to fiscal expansion, higher inflation, and potentially more aggressive interest rate hikes by the Federal Reserve</li> <li>Trump's promises of significant infrastructure spending, tax cuts, and deregulation raised expectations of accelerated economic growth and higher inflation in the US</li> <li>The Federal Reserve was already on a path to tightening monetary policy in November 2016, whereas the Bank of Japan maintained an ultra-loose monetary policy to combat deflation</li> <li>The Japanese yen is often sought as a safe-haven asset in times of market uncertainty and turmoil. The initial reaction to Trump's win was uncertainty, but as markets began to focus on his pro-growth policies, there was a shift in sentiment that favoured riskier assets, leading to a decrease in demand for the yen</li> <li>As global markets absorbed the potential impacts of Trump's victory, there was a shift towards riskier investments. This change in sentiment often leads to reduced demand for safe-haven currencies like the yen and gold (XAUUSD)</li> <li>Trump’s critical stance on trade agreements and potential changes to global trade policies created expectations of a stronger US economy, further supporting the dollar against the yen</li> </ul> <h2>USD/JPY 2020</h2> <p><img alt="" src="/getmedia/fdc90066-bc01-46d0-9efa-c49fc0cfbdba/market-events-fereign-policy-and-forex-chart4-article-image.jpg" style="text-align: center;" /><br /> <br /> Joe Biden’s victory in 2020 caused a rise in the price of USD/JPY. This is primarily due to investors expecting an easing of trade tensions, encouraging riskier investments. Safe haven assets, such as the Japanese yen, were sidelined for high interest yielding assets.</p> <h2>Trading the US elections with ThinkMarkets</h2> <p>The US election opens a wide range of opportunities for traders. Whether you’re trading forex pairs, commodities, stocks, indices, or even futures, it’s important to rely on a data-driven strategy for better results.<br /> <br /> This is where ThinkMarkets comes in. We provide our traders with access to an extensive library of guides and feature-rich platforms designed to boost your trading.<br /> <br /> Stay ahead of the curve and create an account today!<br /> <br /> <i>Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.</i></p>
Navigating the 2024 Halving: How to Trade Bitcoin's Big Event
<p paraeid="{5a322cb4-ebc8-4477-bc6a-908a3b9a4601}{227}" paraid="1424858045">As April 2024 approaches, the term Bitcoin Halving is gaining extra traction. Crypto traders and enthusiasts alike are waiting in bated breath for the Halving event’s impact not just on BTC’s price, but on altcoins as well. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{2}" paraid="2102964511">But what exactly is Bitcoin Halving and why is it important? In simple terms, it is an event hardcoded into Bitcoin’s blockchain protocol which reduces a miner’s rewards by half every four years. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{18}" paraid="608511683">This event adds a scarcity element into the cryptocurrency generating massive appeal and significantly affects the price of BTC. For more information on Bitcoin Halving, read our beginner’s guide here. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{24}" paraid="1312720657">Historically, the last three Bitcoin Halving events which happened in 2012, 2016, and 2020 have caused both short- and long-term volatility. Read here to get a comprehensive overview of BTC’s price during the first three Halvings. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{38}" paraid="1137844410">In this article, we’ll go through some insights on how to trade the 2024 Bitcoin Halving event. <br /> </p> <h2>Preparing for the 2024 Halving</h2> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{60}" paraid="50837725">As the 2024 Bitcoin Halving approaches, there is widespread anticipation for a bullish run. Diving into the historical data and examining how previous Halvings impacted the price of Bitcoin and other altcoins can help identify patterns. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{86}" paraid="406758674">Do you have a trading strategy in plan? Check out how they would’ve fared during the past Halving events using <a href="/en/learn-to-trade/articles/traders-gym/" rel="noreferrer noopener" target="_blank">Traders’ Gym</a>, our backtesting tool, exclusively available on ThinkTrader Web. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{105}" paraid="302886376">Additionally, it’s crucial to keep an eye out for crucial developments within the Bitcoin ecosystem, such as changes in mining technology or regulatory updates. <br /> </p> <h2>Basic Tools and Indicators to Master before the Halving</h2> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{129}" paraid="873999985">Here are the basic tools and indicators that are essential for monitoring the crypto market. Achieving mastery of these tools will help you gain a basic understanding of how the market might move leading to and after the Bitcoing Halving event. <br /> </p> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{145}" paraid="1227863675">With a ThinkTrader account, you get free access to TradingView’s powerful charting interface, equipped with advanced trading tools and features. <br /> </p> <ol role="list" start="1"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="1" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{155}" paraid="370002707">Price and Volume Charts <br /> </p> </li> </ol> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{166}" paraid="548849887">Visualise past and present price movements so you can identify patterns and trends. <br /> </p> <ol role="list" start="2"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="2" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{178}" paraid="707903167">Moving Averages (SMA and EMA) <br /> </p> </li> </ol> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{187}" paraid="816925228">Simple and Exponential Moving Averages can help smooth out price data over specific periods, i.e. before and after the halving, providing insights into the overall direction of the market. <br /> </p> <ol role="list" start="3"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="3" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{219}" paraid="797675934">Relative Strength Index (RSI) <br /> </p> </li> </ol> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{226}" paraid="1284535900">This momentum indicator can help identify whether BTC and other altcoins are overbought or oversold, offering clues on whether there’s an imminent price surge or downturn. </p> <h2 paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{226}" paraid="1284535900">Risk Mitigation During the Bitcoin Halving Event </h2> <p paraeid="{831b4ef8-5fb2-461b-9e3b-76564a87d13c}{246}" paraid="1294906623">The Halving event can lead to high volatility in the cryptocurrency market. If you’re planning to trade cryptocurrencies, make sure you apply these risk management strategies: <br /> </p> <ol role="list" start="1"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="1" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{19}" paraid="627052113">Set take profit and stop loss orders <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{26}" paraid="51518790">The crypto market moves fast. Setting take profit and stop loss orders will help you to secure profits and/or avoid bigger-than-expected losses. TP and SL orders help you exit positions at a predetermined price level without you constantly having to monitor the charts. <br /> </p> <ol role="list" start="2"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="2" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{38}" paraid="117793369">Diversify your portfolio <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{45}" paraid="326773893">While the main focus of the Halving is on Bitcoin, diversifying your portfolio is always ideal. Try to explore altcoins such as ETH, XRP, ADA, or BNB. You can read our guide on how the Bitcoin Halving event affects altcoins here. <br /> </p> <ol role="list" start="3"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="3" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{59}" paraid="665018224">Use leverage cautiously <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{66}" paraid="2133792347">ThinkMarkets offers crypto traders leverage as high as 50:1. This can amplify gains but also lead to larger losses. It’s recommended that you open smaller positions, especially in highly volatile markets. <br /> </p> <ol role="list" start="4"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="4" data-font="" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559684":-1,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{84}" paraid="1701944390">Stay up to date <br /> </p> </li> </ol> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{91}" paraid="739956552">When trading cryptocurrencies, it’s crucial to keep yourself updated with market news and developments. This can help provide insights into potential price movements and allow you to adjust your strategy accordingly. For example, governments and financial institutions accepting crypto can increase its appeal, thus causing a price surge. On the other hand, stricter regulations or outright banning of cryptocurrencies can lead to downturns. </p> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{117}" paraid="1451762027"> </p> <p paraeid="{c1fe1201-e06c-4fb7-b0cd-7a7710b8a228}{121}" paraid="662450524">Trade the Bitcoin Halving event with ThinkMarkets to gain access to advanced trading tools, automatic risk management features, and the latest market news. </p>
ECB report – What is it and how to trade it
<p><img alt="" src="/getmedia/6b738d63-c9c0-4d06-a170-f512346b3560/article-ecb-report-top-logo.webp" style="width: 552px; height: 365px;" /></p> <h3>What does the ECB stand for?</h3> <p>ECB stands for the European Central Bank and is responsible for conducting and managing the monetary policy of the European Union, the world’s second largest economy after the United States of America. This union is called the eurozone, and currently consists of 19 countries who have adopted the euro as their form of currency. The role of the ECB is to manage the price stability of the euro currency, much like the Federal Reserve (Fed) in the US and the Bank of England (BOE) in the UK.</p> <h3>Who runs the ECB?</h3> <p>After the European Union was formed in 1993, countries within Europe (EU) joined together and adopted one single currency – the euro. Following this, countries within the European Union decided to have one single economic and monetary union that had authority to create and manage a single monetary policy across European countries. In 1999, 11 EU member states’ national banks pooled together and transferred responsibility for their monetary policy to one governing body – resulting in the European Central Bank being born.<br /> <br /> <img alt="" src="/getmedia/a7302412-bf96-450f-8345-186498bbf94e/article-ecb-report-people.webp" style="width: 552px; height: 415px;" /><br /> <br /> The ECB is comprised of a governing council/decision making bodies that includes 6 executive board members, plus local central bank governors. Unlike its counterparts in the US and UK, the ECB needs to work with the national banks of the countries it governs as it’s responsible for such a wide scope of different countries. Therefore, it also offers voting rights with 15 national central bank governors, which are rotated on a monthly basis. The largest countries in the Eurozone – Germany, Italy, France, Spain and the Netherlands – have a slightly higher voting frequency than other countries, due to the size of their economies.</p> <h3>What does it do?</h3> <p>The primary objective of the ECB is to formulate and manage the monetary policy for the European Union, which means ensuring price stability and safeguarding the euro. The ECB is also responsible for maintaining the soundness and safety of the banking system and the solidity of the financial system within the European Union.<br /> <br /> A primary directive the ECB decides on are the key interest rates for the euro area, which are:<br /> <br /> The main refinancing operations (MRO) rate – the interest rate the banks pay when they borrow money from the ECB, it provides the bulk of liquidity to the banking system.<br /> <br /> Deposit facility rate – the rate the banks use when depositing money overnight with a central bank.<br /> <br /> Margin lending facility rate – the rate it costs banks to obtain overnight funds from national central banks.<br /> <br /> By managing the interest rate, the ECB attempts to control inflation and the strength of the euro and the European economy.<br /> <br /> Like any other monetary governing body, its key role is to ensure a stable monetary policy, however, how this is done is different to organisations such as the Fed. If the US economy is struggling, the <a href="/en/trading-academy/federal-reserve">Federal Reserve</a> will influence the price and supply of the dollar by buying and selling government bonds. However, a unique factor of the ECB in comparison with the Fed, is that it is the only institution that can authorise the printing of euro banknotes within the EU. This means it can directly control the amount of euros available to eligible banks; whether that is through printing money or electronically through cash reserves to control inflation and interest rates.<br /> <br /> For example, if the EU starts to experience inflation and prices go up, the ECB can pull euros from the market to soften the pressure. Likewise, if the economy starts experiencing an economic downturn or a declining output, the ECB can step in to provide more money for the economy to revert the effects and avoid a recession.<br /> <br /> Verified banks can then bid for, or request funding at a set interest rate, which they can then loan to the public or businesses to keep the economy moving.</p> <h3>When does the ECB meet?</h3> <p>The governing council meets every two weeks. However, official monetary policy meetings are held every 6 weeks to make monetary decisions and the results are very transparent to the public. The ECB holds a press conference after every policy meeting where members of the governing body speak on behalf of the ECB to discuss any changes or actions taken, and the meeting minutes are also made public.</p> <h5>ECB policy meeting calendar</h5> <img alt="" src="/TMXWebsite/media/TMXWebsite/Articles/article-ecb-report-ecb-calendar.png" /> <h3><br /> How does this affect trading?</h3> <p>The publication of the ECB rate decision is one of the most keenly watched financial events. The outcome affects the markets as it decides the interest rates within the banking system, and effectively how much of the euro money supply is available within the economy. This, in turn, has a ripple effect on the markets. The decision can have a big impact particularly on the forex and stocks markets.<br /> <br /> The ECB rate decision can cause elevated volatility. For example, in the forex market, currency pairs tied to the euro such as EUR/USD can sometimes move by 100 pips. European stocks and indices such as the German index DAX can also see a lot of movement after the announcement.<br /> <br /> This is because the change in interest rates has a direct impact on the accessibility of available capital, which then creates movement in the value of the currency and the euro's purchasing power. With stocks, as the interest rate has a direct impact on business lending and economic growth; it will also see movement, particularly in stocks and indices of banking providers.<br /> <br /> Traders will also speculate on why interest rates rise or fall and try and strategise on what will come in the future. For example, if interest rates rise, this could indicate that the ECB is trying to curb inflation. If inflation is at a high level, this will also affect the markets. Growth tends to slow, there is less consumer spending and the markets – especially the stock market – can become quite volatile.<br /> <br /> The ECB meetings are a key data point to look at when creating a trading strategy, especially if you are trading in European stocks, indices, commodities, or forex.<br /> <br /> Having a strategy is key, and testing this in a simulated market environment could help you to hone your skills.<br /> <br /> Trade the ECB report today! <br /> </p>