The chief investment officer of crypto fund operator Bitwise said the Bitcoin (BTC) halving event will be a bullish trigger.
In a new interview with CNBC Squawk Box host Andrew Sorkin, Bitwise CIO Matt Hogan said the April 19 halving, when miners' compensation will be halved, will be a big deal based on historical precedent. He said it could cause a large-scale rise in stock prices.
However, he predicts that the bullish effects will only be felt over the long term.
“Long-term, I think this is buy news. Historically, when you look at halvings, if you look at them in a week or two, the price movements around the halving are relatively calm, but if you look at them in a year, Looking at it, Bitcoin prices have rebounded significantly after each of the past three halvings, and will likely do so again.
The amount of new Bitcoin entering the market will be cut in half, eliminating $11 billion in annual supply. I think the big picture has to be value for money, and that's what I expect for next year. ”
He also believes that spot Bitcoin exchange-traded funds (ETFs) will pump more liquidity into the best-performing digital assets, increasing their value.
“What ETFs have done is make this market accessible to professional investors. It’s very difficult for endowments, advisors, and family offices to buy Bitcoin on an app. It's simple. So I think there's a finite amount of new buyers in the ETF…
Bitcoin is experiencing both a demand shock due to the launch of ETFs and a supply shock due to the current Bitcoin halving. They are happening at the exact same time. And that's a really exciting setup for next year. ”
At the time of writing, Bitcoin was trading at $63,862, up slightly over the past 24 hours.
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