Bitcoin's halving event historically leads to price increases due to reduced mining rewards, tightening supply. However, other factors such as demand, macroeconomic events, and investor sentiment also influence the price movement.
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Ethereum 2.0, with its transition from Proof of Work (PoW) to Proof of Stake (PoS), aims to improve scalability, energy efficiency, and transaction speed. This upgrade strengthens Ethereum’s position as the leading smart contract platform, addressing issues like high gas fees and network congestion. With PoS, Ethereum becomes more eco-friendly and potentially more attractive to developers and institutional investors. While there are competing platforms like Solana and Polkadot, Ethereum's upgrade ensures it remains a strong contender, attracting both new projects and established dApps looking for scalability without compromising security.
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Institutional investors can significantly reduce volatility by bringing stability and liquidity to the crypto market through large-scale investments. Their entry often boosts confidence in the market, attracting more retail investors. However, when institutions liquidate their positions, it can lead to sharp price declines due to the sudden sell-off of substantial amounts. Their market activity can also signal legitimacy, influencing both short-term price movements and long-term trends as they bring more structure and long-term capital to the space.
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