After the highly anticipated Bitcoin halving, there is debate among investors and analysts about its effect on the cryptocurrency market. Using past information as a reference, experts present opposing opinions: some believe the halving will cause Bitcoin’s price to soar, while others anticipate a drop in value due to selling pressure.
Bullish Outlook: Historical Trends, Institutional Interest Fuel Optimism
Matt Hougan, the CIO of Bitwise, is confident that Bitcoin’s price will rise after its next halving event based on historical trends. Previous Bitcoin halvings have led to significant price growth in the long run, according to his analysis.
Hougan identifies two major factors contributing to possible price increases in Bitcoin. Firstly, he notes that the number of new Bitcoins entering the market has decreased due to the halving. Secondly, he highlights the surge in demand from institutional investors, who are buying Bitcoin through spot Bitcoin ETFs.
Skeptical Caution: Is The Halving Already Priced In?
Yet, not all individuals are as hopeful as Hougan. In contrast, Dan Dolev, the Managing Director at Mizuho Securities, takes a more cautious approach, proposing that the market might have already accounted for the effects of the halving event.
Dolev cautions about a possible “buy-the-news, sell-the-fact” situation, in which investors who had expected an event might quickly sell their holdings once the event happens. He notes that this year’s halving has received significant media attention, potentially leading market participants to have already incorporated the anticipated price adjustments into current stock prices.
Institutional Interest And Market Maturation
Jeff Hancock, the CEO of Coinpass, provides a thoughtful viewpoint, emphasizing the increasing institutional adoption of Bitcoin as a valuable asset. In his opinion, Bitcoin has evolved from being seen as a risky investment to a serious contender for portfolio diversification. This shift becomes even more significant in the context of rising inflation and interest rates in conventional financial markets.
Hancock uses the thriving growth of Bitcoin ETFs with more than $60 billion in assets as a sign of institutions’ strong interest in investing in cryptocurrencies.
Symbolic Significance Of The Fourth Halving
Thomas Perfumo, the Strategist at Kraken, highlights the symbolic significance of Bitcoin’s halving. According to him, this occurrence represents an important landmark in Bitcoin’s past, as approximately 90% of its entire issuance has been mined already.
Bitcoin’s inflation rate being below 1% signifies that its supply is scarce, making it valuable as a digital asset according to Perfumo’s perspective.
Near the end of the Bitcoin halving event, there are varying views among experts about its influence on the cryptocurrency market. Some believe the scarcity of new Bitcoins entering the market and growing institutional investment will push prices up. Others advise caution, pointing out that certain market factors may already be reflected in the current value.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- GLM PREDICTION. GLM cryptocurrency
- PLASTIK PREDICTION. PLASTIK cryptocurrency
- LANDWU PREDICTION. LANDWU cryptocurrency
- Pokemon Fusion Fan Art Combines Scizor and Charizard
2024-04-20 23:11