- SUMMARY
Today marks a significant event in the world of cryptocurrency: the Bitcoin halving.
This event, which occurs approximately every four years, cuts the number of new Bitcoins entering the market by half.
Historically, halvings have been associated with increases in Bitcoin’s price, as the supply reduction drives up demand.
Matt Hogan, CIO of Bitwise Asset Management, believes this halving will follow the same pattern.
He notes that the Bitcoin price has typically rallied in the year following previous halvings.
In his view, the recent price rise, which has pushed Bitcoin above $65,000, is a reflection of anticipation for this event.
However, Hogan also cautions that geopolitical events, such as the recent tensions between Iran and Israel, may create market volatility in the short term.
He emphasizes that, in the long run, Bitcoin has shown resilience against inflation and is gaining recognition as a potential hedge against geopolitical risks.
Regarding the upcoming Ethereum ETF, Hogan suggests that the Bitcoin ETF has unlocked significant investment for professional investors and that the marginal activity in the ETF may be substantial.
However, he believes that Bitcoin itself still has plenty of potential for growth in the near term before the Ethereum ETF becomes widely available.
- Key Takeaways
Bitcoin halvings historically drive up demand and price.
Previous halvings have been associated with increases in Bitcoin’s price, as the supply reduction drives up demand.
The recent Bitcoin price rise may be a reflection of anticipation for this halving.
Matt Hogan, CIO of Bitwise Asset Management, notes that the Bitcoin price has typically rallied in the year following previous halvings.
Bitcoin has shown resilience against inflation and is gaining recognition as a potential hedge against geopolitical risks.
Hogan emphasizes that in the long run, Bitcoin has shown resilience and is gaining recognition as a potential hedge against geopolitical risks.