The halving is taught to be an event that affects the price of Bitcoin directly. Rather than showing its instant results, Bitcoin halving event tends to show its impact similar to the way we witness the effects of inflation or diflation on the markets. The halving gives birth to the supply deficit in Bitcoin that accumulates every single block.
As a result of the breakout from the equilibrium level, the price of Bitcoin goes up by nature. The halving is a proof that the future of the chain is not between the two lips of any decision maker groups behind. Contrary to the inflation or oversupply of fiat money, the deflationary nature of Bitcoin creates its own narrative to survive and find a place to itself in the financial markets.
Back in 2017, the risk of Bitcoin sell - off from a whale was a huge risk for many people. The early investors assumed that the price of Bitcoin may tank up to $1 and the market may die as a consequence of that historical rugg pull. Yet, time proved that these fears were totally non-sense because this digital gold became a reserve asset for some countries, asset for some companies and long - term investment for millions of retail investors.
While we dreamed of paying for our Starbucks coffee with Bitcoin 7 years ago, now we wait for the time when our countries start accumulation Bitcoin aside from USD and Gold in the central bank reserves.
Before ETFs - After ETFs
Though halving does not affect the market on day 1, the ETFs are developed for that. The EFTs made the dream that Bitcoin will be accessible to everyone with the integration of blockchain projects and the products of financial markets. Since their launch, Bitcoin Spot ETFs. had millions of dollars inflow as a new type of investment for non - crypto investors.
The ETFs made it possible for elder people to put their money in Bitcoin if they want to be a stakeholder of the future technology.
- No Digital Wallet
- No transfer from banks to central exchanges
- Security of giant financial institutions with low fees
After the approval of ETFs, we witnessed a rush in Bitcoin. It was just the first episode of the crypto hunt. Most of the investors, both retail and fund managers, wait for the interest rate cuts to jump into crypto with a bigger portfolio. Since the altcoins are not 100% ready to be adopted, even Ethereum is questioned and the ETFs are likely to be rejected, we may see more demand on Bitcoin from the side of institutions.
Even when the interest rates are above 5.25 and the global tension is increasing, we tested another all time high with $73K. What will be the price when the interest rates are as low as 2.0 - 3.0 and there is no political pressure on the market? It is worth thinking about it 😉
What do you think about halving and the post - ETF era in Bitcoin?
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Posted Using InLeo Alpha
