Bitcoin Runes, a project set to launch alongside the upcoming Bitcoin halving, has garnered attention from both investors and Bitcoin enthusiasts. However, experts believe that the peak price of the coin may not be reached immediately after its release, but rather at some point during its lifespan.
Ignas, a pseudonymous researcher in the decentralized finance (DeFi) field, warns that the initial trading of Bitcoin Runes may be volatile, similar to meme tokens. He notes that liquidity is already being offered by RSIC, RSIC, Runestone, and PUPS, and that daily/weekly Rune token drops for community holders, such as NFTs, are planned. Despite the current hype, Ignas expects the market to cool off as more people invest.
The researcher points out that, like FOMO threads, current investor interest in Bitcoin Runes is high but elastic. However, the tokens may not experience a rapid increase in value after the burn. This is because users have only seen a minimal impact of BRC-20 token boom on their trading activities, and smaller-scale operators may be squeezed out of the market due to growing fees for Bitcoin transactions.
The success or failure of Bitcoin Runes depends not only on the market’s response after its launch, but also on its future trajectory. Analyst advice is crucial for making investment decisions and should be approached conservatively. High price fluctuations and initial high entry costs may deter less experienced, especially smaller, investors, potentially destabilizing the market.
As Bitcoin Runes becomes more attractive, additional advantages may emerge, solidifying its dominance in the market. While there may be some difficulties and disappointments initially, stable utilities could soon follow, making it appealing to long-term investors.
This project showcases the Bitcoin ecosystem’s advancement through innovation, but immediate results may be concealed behind the hype. Investors should diligently follow the market and anticipate potential ripple effects over time before making significant investments.