Binance CEO Richard Teng said this year’s bitcoin BTC
+4.38%
“This year’s halving is unique in that it comes amidst a series of significant events in Bitcoin and the broader cryptocurrency ecosystem,” Teng told The Block in written comments.
“In addition to the breakthrough in ETFs, which sparked institutional interest and participation, another major trend in cryptocurrencies today is the boom in layer 2 and DeFi activity on the Bitcoin network, driven by the popularity of the Ordinals protocol and Bitcoin Inscription. .” He added:
Teng pointed out that Bitcoin prices have historically risen for six months following each halving. Halving occurs every four years and reduces the number of Bitcoin rewards available to miners by half. He said this decline in the supply of new coins could be behind the market’s reaction to each event.
However, he noted that room for further growth will depend on a variety of factors, including overall market sentiment and adoption rates. He added that the Bitcoin ETF approval has already increased Bitcoin demand and its reach.
“While the above points amount to an optimistic outlook for BTC and the cryptocurrency market in general, it is important for investors, especially newcomers to the cryptocurrency space, to manage their expectations,” Teng said. “Immediate price movements resulting from the halving are not guaranteed; its fundamental significance will be reflected in longer-term trends in value, liquidity, adoption, and the standing and acceptance of cryptocurrencies as an asset class.”
Bitcoin halving is scheduled to occur tonight, reducing the per-block reward from 6.25 BTC to 3.125 BTC over the next four years. Watch the countdown here.
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Tim is the editor-in-chief of The Block. Before joining The Block, Tim worked as a news editor at Decrypt. He holds a BA in Philosophy from York University and studied News Journalism at Press Association Training. X Follow him at @Timccopeland