As the Bitcoin halving draws near, investors find themselves at a crossroads: should they purchase cryptocurrency shares now or hold off and buy at a later time?
Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, appeared on SquawkCNBC to talk about the potential effects of the upcoming bitcoin halving event this week.
— CNBC (@CNBC) April 19, 2024
Industry representatives present conflicting perspectives; for example, Matt Hougan, CIO of Bitwise Asset Management, advocates adopting the “buy the news” approach when investing. (This means buying an asset after positive news about it has been announced.)
Based on Hoagman’s perspective, historical trends indicate that bitcoin’s price experiences significant increases following each halving event. The halving process, an integral part of Bitcoin’s proof-of-work system, takes place approximately every 210,000 blocks and decreases the number of coins rewarded to miners by giving them only half the amount they received over the previous four years.
A decrease in supply, combined with an uptick in demand for Bitcoin due to the introduction of spot Bitcoin ETFs (which track Bitcoin’s price fluctuations), would lead to higher prices.
The CEO of Coinpass, Jeff Hancock, points out that Bitcoin is growing less volatile as it becomes integrated into the conventional financial sector. This development is drawing in larger investors due to factors like rampant inflation and the launch of new investment funds.
Based on Hancock’s perspective, the market for this cryptocurrency is historically significant and is expected to continue experiencing demand past the year 2024. He ponders over the possibility of developing Exchange-Traded Funds (ETFs) that would enable investment in at least one more significant cryptocurrency.
The viewpoint of experts on this topic varies greatly. Some argue that taking a long-term approach is best due to expectations of higher prices. However, it’s important to note that the crypto market is known for its volatility, which significantly impacts short-term price fluctuations. Pricing instability continues to be a significant factor influencing the market’s ups and downs in the immediate term.
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2024-04-20 03:32