Bitcoin’s upcoming halving event in May, which is expected to have a significant impact on the market, has been a hot topic of discussion recently, according to Kris Marszalek, the CEO of Crypto.com. Marszalek agrees with Bloomberg media’s prediction that there may be a sell-off of the cryptocurrency before the event. However, he points out that this “buy-the-rumor, sell-the-news” pattern has occurred before. Despite the initial decrease in price, Marszalek remains optimistic about the future direction of Bitcoin’s price.
Marszalek emphasizes that while there may be short-term reactions, the ultimate gains always outweigh them. He highlights the gradual reduction of the mining reward with each new block, resulting in a decrease in the amount of new Bitcoin entering circulation. This reduction in supply typically leads to an increase in price, counteracting the initial selling pressure in the market.
Prominent figures in the industry have shared their thoughts on the potential outcomes of the Bitcoin halving. Marathon CEO Fred Thiel believes that the market may have already factored in some of the effects of the upcoming halving. The impact of the event on cryptocurrency prices remains to be seen, especially considering the potential influence of post-ETF fund approvals, which could have contributed to the recent rally in prices leading up to the halving.
On the other hand, billionaire crypto expert Arthur Hayes expresses skepticism about the halving’s impact. He believes that both pre-halving and post-halving activities could move in a direction opposite to the bullish expectations held by many. This difference in opinions reflects the typical ambiguity and diverse viewpoints surrounding market-based outcomes of disruptive processes.
Despite the varying views on short-term price fluctuations, there is a consistent positive outlook on the long-term profitability of the halving. Ripple CEO Brad Garlinghouse shares a bullish view on the market capitalization projection of cryptocurrencies, predicting that it will double this year. The introduction of new bitcoin spot ETFs and the halving are expected to bring about the long-awaited bullish trend that is believed to drive prices to new heights.
Furthermore, Marszalek reinforces his belief in the resilience of Bitcoin during turbulent periods. He anticipates not just moderate price movements but heavy speculation in the Bitcoin market in the six months following the halving. With changes in the reward structure for miners and their commitment to innovation and updating mining equipment, a situation may arise where the reduced mining reward leads to increased scarcity of coins and higher prices.
