Manhar Garegrat, Country Head India & Global Partnerships at Liminal Custody Solutions
The upcoming 4th Bitcoin halving may not be immediately discernible, there are several second-order effects to consider. Past halvings have often triggered heightened market volatility and increased trading activity. This time, we anticipate similar dynamics, potentially leading to price fluctuations and shifts in investor sentiment .The Bitcoin halving could influence the price of Bitcoin due to its increased scarcity leading to upward price pressure and influx of new investors in the crypto market . In addition to the potential impacts on altcoins, it’s worth considering the possibility of new products being introduced into the crypto market. Just as spot ETFs are being launched around the world, innovative financial instruments may emerge in response to the dynamics surrounding the Bitcoin halving offering investors alternative avenues for exposure to digital assets.
It’s imperative to acknowledge that Custody services play a crucial role in ensuring the safety and security of digital assets especially during events that can have amplified price volatility and activity, like the Bitcoin halving. Custodians should establish a secure environment for digital asset storage by utilizing advanced encryption methods, multi-factor authentication, and continuous monitoring systems to safeguard against cyber threats and unauthorized access.
Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange
Less than 4 days remain for the reduction of block rewards from 6.25 Bitcoin to 3.125 Bitcoin marking the 4th Bitcoin halving. Bitcoin’s price may experience short-term corrections or dips following a halving, but historical precedent suggests that the halving could catalyze significant shifts in the crypto market leading to a new all-time high in the upcoming months. Observing previous cycles, we may witness a notable decline in BTC dominance accompanied by a surge in interest and investment in altcoins within 12- 18 months of the halving. Further, the recent approval of Bitcoin and Ether ETFs by the Hong Kong regulator underscores growing institutional acceptance and marks a pivotal moment for Bitcoin adoption . This development, coupled with the Bitcoin halving event hints at a positive trajectory for Bitcoin’s future. With each halving, Bitcoin reaffirms its resilience and potential, poised to reshape the financial landscape in the years to come.
Jyotsna Hirdyani, South Asia Head at Bitget
The Bitcoin halving marks a pivotal moment for the cryptocurrency industry which occurs roughly every four years or every 210,000 blocks to adjust the rate of new Bitcoin production.This halving event serves to uphold the scarcity narrative of Bitcoin, a fundamental aspect of its value proposition. Historical data exhibits a pattern where halving results in a reduction in the supply of new Bitcoin, typically driving price increases when demand remains stable or increases. However, it’s crucial to note that there are significant differences in the magnitude of price movements and the timing of reaching peaks.
As the Bitcoin halving approaches, there’s a palpable sense of anticipation rippling through the crypto industry, with Bitcoin miners strategically depleting their coin stashes ahead of the reduction in per-block rewards. Data shows a decline in miner-held Bitcoin which signals a shift in strategy towards profit-taking and operational upgrades amidst Bitcoin’s recent rally to record highs. Despite this, many anticipate a continuation of the bullish trend leading up to the halving driven by the scarcity narrative inherent to Bitcoin’s design.
Following the Bitcoin halving, the cryptocurrency market often experiences a period of heightened volatility and price discovery. Historically, post-halving phases have been characterized by significant market movements, with Bitcoin frequently reaching new all-time highs (ATH). The market’s resilience and the growing institutional interest in Bitcoin has fueled optimism among investors, leading many to speculate on the potential for Bitcoin to reach unprecedented price levels . Currently, with the approval of ETFs in the US and now in Hong Kong there has been a continuous inflow of funds driving Bitcoin prices to consecutive new highs. However, there is short-term uncertainty in the macroeconomic situation. It is important to note the risk of pullback in Bitcoin prices due to the uncertainty in the macroeconomy despite positive market sentiment. If the cryptospace runs on historical track record then within 10-18 months we can expect Bitcoin surging to new ATHs of $100,000 and more.
