Matt Hougan, the chief investment officer at Bitwise Asset Management and well-known manager of crypto index funds, believes that the upcoming Bitcoin halving presents an opportunity for investors. Based on historical data, he mentioned in a recent interview with CNBC that post-halving price increases have typically occurred.
Every four years, Bitcoin undergoes a process called halving, which involves a decrease in the reward given to miners for verifying transactions. This reduction in supply is anticipated to increase the demand and subsequently, the price of Bitcoin. According to Hougan’s forecast, this event will have a favorable effect on Bitcoin’s value over the next twelve months due to the reduced influx of new coins into circulation.
Matt Hougan, Bitwise CIO, explains that the new Bitcoin supply entering the market is being reduced by half. This equates to a removal of approximately $11 billion in annual supply. Looking at the bigger picture, he believes this reduction should be beneficial for the price and is his expectation for the next year.
According to Jeff Hancock, the CEO of Coinpass, Bitcoin has matured into a valuable asset that garners institutional attention. He is optimistic about the present market trend and the successful launch of Bitcoin ETFs, which he believes bodes well for the cryptocurrency’s future.
Hancock expressed, “Bitcoin’s prices are reaching new peak records prior to the halving event, which is unprecedented. In my view, Bitcoin’s market prospects are virtually limitless.”
Experts believe the institutional interest in Bitcoin is robust, potentially expanding to Ethereum ETFs. These investment vehicles could provide access not only to Bitcoin’s price appreciation but also staking rewards and decentralized finance opportunities on Ethereum. Despite regulatory hurdles, both assets are expected to perform well in the market, with a bullish outlook for Bitcoin and potential growth for Ethereum.
The increasing popularity of Bitcoin ETFs with more than $60 billion in investments indicates a surge in faith among investors in the cryptocurrency market. According to Hancock’s prediction, this trend will persist, leading to significant changes in the crypto industry even beyond the year 2024.
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2024-04-20 09:10