Bitwise Chief Investment Officer Matt Hougan offered a long-term view on the Bitcoin halving based on historical data and spot ETF demand.
In an April 19 conversation with CNBC, Hougan argued that this year’s Bitcoin (BTC) halving is an opportunity to “buy the news” for investors interested in the world’s largest cryptocurrency asset class.
Matt Hougan, Chief Investment Officer at Bitwise, said:
“Looking back at the Bitcoin halving events in history, we can see that within one to two weeks after the halving, the price trend of Bitcoin is usually relatively stable. But if we extend the time to one year, , it can be found that the price of Bitcoin (BTC) has experienced significant increases after the previous three halving events. Based on this, I expect that the price of Bitcoin will also see a similar sharp increase after this halving. "
The halving is a built-in code mechanism designed by Bitcoin founder Satoshi Nakamoto to slow down Bitcoin's inflation and maintain its scarcity. Nakamoto set up a system where miners' mining rewards are halved every 210,000 blocks mined on the Bitcoin network, which is roughly equivalent to four years.
As the block mining reward is halved, the amount of new BTC entering circulation is also halved. Many believe that this reduction in supply, coupled with increased demand through spot Bitcoin ETFs, will lead to higher prices next year. Hougan's company, as the issuer of the BTC ETF, also agrees with this view.
Matt Hougan, chief investment officer at Bitwise, said, "The supply of new bitcoins entering the market is being halved. That's equivalent to reducing the supply by $11 billion per year. I think in the big picture, this is good for prices, and that's what I expect for the next year."
Bitcoin halving will solidify demand for spot BTC ETFs
Jeff Hancock, CEO of Coinpass, said in an interview that Bitcoin has evolved from an initial hobby and speculative market to a real, mature asset class that has successfully attracted the attention and interest of institutional investors. He believes that this transformation will make the current Bitcoin cycle different from the past, especially in the current economic environment, with high inflation and relatively high interest rates, the value of Bitcoin as an asset may be more recognized and valued.
Matt Hougan, CEO of Coinpass, believes that a historic market opportunity may emerge in this cycle of Bitcoin, especially after the fourth halving event. He pointed out that Bitcoin exchange-traded funds (ETFs) have been successfully launched in the United States, and there are ETFs currently awaiting approval in Hong Kong, as well as exchange-traded notes (ETNs) on the London Stock Exchange. Hancock emphasized that before the halving, the price of Bitcoin was already hitting a record high, which was a phenomenon that had never happened before. Based on these circumstances, he believes that the market for Bitcoin has unlimited potential in the future.
Hougan believes that global demand for Bitcoin will continue to exist and will extend far beyond 2024. He expects that traditional finance will continue to expand and enrich the cryptocurrency ecosystem. In addition, spot Bitcoin exchange-traded funds (ETFs) have accumulated more than $60 billion in assets in less than six months.
The U.K.-registered crypto boss added that the success of the spot BTC ETF could potentially extend to an Ethereum (ETH) counterpart, despite what appears to be a firm opposition from the U.S. Securities and Exchange Commission (SEC).
The U.K.-registered cryptocurrency company boss added that the success of spot Bitcoin (BTC) exchange-traded funds (ETFs) could potentially extend to similar products for Ethereum (ETH), despite the U.S. SEC’s seemingly firm opposition, suggesting that an Ethereum ETF could still make progress in the future even in the face of strict regulatory challenges.
Jeff Hancock, CEO of Coinpass, said: "Institutional demand for Bitcoin is long-term. Ethereum ETF may follow in 2024, which means that institutional investors will be able to obtain staking rewards and entry to decentralized finance through institutional tools." #Bitwise #比特币减半
