Bitcoin’s halving in May, which is anticipated to impact how the market behaves, is topical at the moment, as Kris Marszalek, the chief executive officer of Crypto.com, has outlined. Marszalek agreed with Bloomberg media, saying that the cryptocurrency could witness a sell-off before the event. As was stated by him, however, this conveyance of “buy-the-rumor, sell-the-news” has been repeated in earlier phases. Even though the need for a cut in price will melt initially, he feels optimistic about the price direction in the coming picture.
Marszalek stressed that short-term reactions may be evident but are always surpassed by the ultimate gains. He drew attention to the fact that the mining reward was being gradually reduced with each new block, such that the amount of new Bitcoin entering circulation would be half. This, according to him, commonly puts upward pressure on the price. This basic divergence of supply will work against the initial selling pressure implied by the market.
Industry giants debate Bitcoin halving outcomes
Heavyweights in the industry have commented on the anticipated ramifications of the Bitcoin halving to them. Although Marathon CEO Fred Thiel said, the market might have already priced in some effects of the upcoming BTC halving. It remains to be seen how the halving event will influence the prices of cryptocurrency. He explained that post-ETF fund approvals might have pushed new investments, which can be a reason for the substantial rally in the last 6 months before the next halving.
Unlike Arthur Hayes, a billionaire and an expert in the crypto world, his opinion was skeptical because he said it was not easy. Hayes wagered that not only the pre-halving but the post-halving activities could rather move to the left than to the right, that is, against the bullish anticipations held by a majority of people viewing the halving as a catalyst of price rises. In this regard, comments show an ambiguity and diverse viewpoints that typically surround market-based outputs of disruptive processes.
Optimism prevails for long-term Bitcoin gains
While there have been different opinions on the impact of the temporary price fluctuation, the consistent positive view is that the halving will be more profitable in the long term. However, Ripple CEO Brad Garlinghouse shares the same bullish view on cryptocurrencies’ market capitalization projection, with a prediction that the total market cap of cryptocurrencies will double this year. New bitcoin spot ETFs and the halving are expected to bring the long-awaited bullish trend that is believed to be the reason for the skyrocketing prices.
Moreover, on the first trend in addition to that, Marszalek reinforced his hope of survivability in the face of turbulent periods. He is looking for not just “moderate price movements” but “heavy speculation” in the Bitcoin market in the six months after the halving. Following the changes in the reward structure for miners and their continued determination to innovate and update their mining equipment, a situation could be created where a low mining reward brings in more coin scarcity and as well an increase in prices.
