The cryptocurrency world is full of predictions and analyses as we inch closer to the next Bitcoin halving event scheduled for April. In a recent online event, Bitfinex CTO and Tether CEO Paolo Ardoino highlighted the complications of forecasting Bitcoin’s future pricing at this time.
Quick Take:
- Paolo Ardoino points out the difficulty in predicting Bitcoin’s price as the next halving approaches.
- The upcoming halving in April is expected to reduce mining rewards from 6.25 to 3.125 Bitcoin per block.
- The rise of spot Bitcoin ETFs is playing a crucial role in influencing Bitcoin’s market dynamics.
The event was a platform for Ardoino to discuss the impact of the halving on Bitcoin’s value. It is a topic that has captured the interest of crypto analysts and investors alike.
Ardoino stated that the demand for Bitcoin is outpacing existing mining. This shows the disparity between the current mining output and the increasing demand. The existing mining scenario and halving will cut miner rewards by half. The current rate of 6.25 BTC per block mined is slated to reduce to 3.125 BTC post-halving.
Therefore, Ardoino points out that the majority of Bitcoins have already been mined. He is suggesting that the impact might be more psychological than substantial.
This prediction comes against the backdrop of Bitcoin’s recent price surge, reaching a new high of $73,000 this week. However, the coin is trading between $67K and $69K at the moment. Plus, mining revenue for Bitcoin hit an all-time high last weekend.
Bitcoin Halving Event and the Rise of ETFs
An average of 900 BTC are mined daily on the network. This figure will halve to 450 post-halving. Yet, the daily inflows into some spot bitcoin ETFs, like BlackRock, are dwarfing these numbers.
On Thursday, BlackRock reported inflows amounting to 4,886 BTC. This is a staggering $345 million in a single day. These figures indicate that the daily net inflows into these ETFs are significantly higher than the miner rewards’ daily issuance.
The Head of Research at CoinShares, James Butterfill, underscores the growing influence of these ETFs. In February, spot bitcoin ETFs consumed an average of 2,800 bitcoins per day, contributing significantly to recent price trends.
The use of Tether (USDT) in Bitcoin trading remains substantial even though Bitfinex is no longer the dominant player in centralized crypto exchanges. Tether’s role in the cryptocurrency market cannot be understated, as it has a market cap of over $103 billion,
The future pricing of Bitcoin remains a complex equation as mining outputs decrease and demand increases due to spot bitcoin ETFs. However, in Ardoino’s view, supply and demand, mining outputs, and market dynamics all interact to shape the future of Bitcoin.
