To The Moon

Bitcoin halving is an important event in the world of cryptocurrencies, and while it directly affects Bitcoin itself, it can have broader implications for the entire crypto market, including crypto stocks.

When is the next bitcoin halving?

The next bitcoin halving is expected to occur in April 2024, when the number of blocks hits 740,000. It will see the block reward fall from 6.25 to 3.125 bitcoins. The exact date of the halving is not yet known as the time taken to generate new blocks varies, with the network averaging one block every ten minutes.

Key Events : Bitcoin Halvings

In this article I would like to share why it is important to crypto stocks and why we can take advantage before the next Bitcoin halving to buy into Crypto related ETF.

$ProShares Bitcoin Strategy ETF(BITO)$ is one asset you can consider to invest into now, I will explain why below.

ProShares Bitcoin Strategy ETF (BITO) Analysis

If we do not wish to understand or create a wallet to hold Bitcoin and also not into Crypto stocks, you may consider this ETF which has a Bitcoin exposure, it has quite a good year-to-date return so far.

This ETF is started in October 2021, so we are not able to see what would be the performance when Bitcoin halving happen, but historically, Bitcoin halving events have been associated with price rallies. The idea is that the reduction in the rate of new Bitcoin creation, combined with growing demand, can lead to an increase in the asset's value.

If the price of Bitcoin rises after a halving, it can help offset the reduction in mining rewards for miners, positively impacting their overall revenue.

This is why investing in an ETF which contain the major Bitcoin miners would be an option to gain from Bitcoin rallies.

ProShares Bitcoin Strategy ETF (BITO) Year-To-Date Return

BITO has return more than 120% to investors over the year, and I believe it should be able to continue to do well when Bitcoin price trend close to $40,000.

One thing you might want to take note is the 0.95% per annum expense ratio, but it is worth considering as the last dividend yield is more than 15%.

ProShares Bitcoin Strategy ETF (BITO) 50/200 Moving Average

BITO have been trading above the 50 and 200 period and for quite a long period, with Bitcoin prices predicted to go higher, I think this might be a time to load up.

My model has given a BUY signal not long ago, and I would be monitoring to load more.

ProShares Bitcoin Strategy ETF (BITO) Correlation With Bitcoin (HIGH)

As we can see BITO has a 1.0 correlation value to BTC, rising from around 0.7 from around 45 days ago, it is much higher than COIN and S&P 500.

With this correlation, as long as Bitcoin continue to move higher, and rallies after the halving, I do see that BITO to reach a new high.

Summary

While Bitcoin is the most well-known cryptocurrency, its movements often influence the broader crypto market. When Bitcoin experiences a significant price rally or enters a bull market, it can lead to increased interest and investment in other cryptocurrencies and crypto-related stocks.

It is important to note that the cryptocurrency market is highly dynamic and influenced by various factors. While Bitcoin halving is a noteworthy event, we as investors should consider a range of factors and conduct thorough research before making investment decisions in crypto stocks or any other crypto assets.

Appreciate if you could share your thoughts in the comment section whether you think BITO is worth to invest to take advantage of the Bitcoin price rallies due to upcoming halving event.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.