With the next Bitcoin halving fast approaching, Bitfinex CTO and Tether CEO Paolo Ardoino says the price impact may be difficult to predict as spot Bitcoin exchange-traded funds increase demand.
At an online event hosted by Bitfinex on Friday, Ardoino was asked how the upcoming Bitcoin halving event could affect the price, which he said could be difficult to predict.
“Already today, demand for Bitcoin far outstrips traditional mining,” Ardoino said. “So we’re seeing these large institutions and ETFs. Bitcoin demand is currently far exceeding mining production. Of course, mining production will be cut in half, but that’s a matter of perception. The vast majority of Bitcoin has already been mined. .”
Although Bitfinex is no longer the dominant centralized cryptocurrency exchange it once was, USDT is the most used stablecoin for Bitcoin trading. As of this writing, Tether has a market capitalization of $103 billion.
The next halving event is scheduled to take place in April, which is expected to reduce miner rewards from 6.25 Bitcoin per block to 3.125 Bitcoin. Bitcoin mining profits have reached an all-time high. Best ever last weekend, according to a previous report by The Block. This comes as Bitcoin price breaks out to new levels. High This week it was $71,000, but later it was closer to $68,000.
Spot Bitcoin ETF Effect
Based on the current reward of 6.25, an average of 900 bitcoins are currently mined per day on the Bitcoin network. BTC
-3.17%
The average block time per block is approximately 10 minutes. At the end of the halving, the average daily mining volume will be halved to 450 Bitcoin.
According to data Daily inflows from some spot Bitcoin ETF issuers on BitMEX are surging beyond this figure. For example, BlackRock recorded inflows of 4,886 BTC ($345 million) on Thursday alone, and the ETF’s daily net inflows regularly represent daily issuance multiples of miner rewards.
According to James Butterfill, head of research at CoinShares, spot Bitcoin exchange-traded funds were consuming 2,800 bitcoins per day in late February and were having a significant impact on recent price trends. 11 spot Bitcoin ETFs have been granted. green light From the Securities and Exchange Commission last January.
James Hunt contributed reporting.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.