Head of BitGo Go Network Matt Balensweig claims that the impending Bitcoin halving will result in "real changes" to the cryptocurrency's supply and demand dynamics. Balensweig's remarks give the continuing speculation about whether or not the halving is already priced in a fresh perspective.
Investors and traders in cryptocurrencies sometimes inquire, "Is the halving priced in? However, it doesn't usually get priced in every cycle, according to Balensweig. He compared it to the approval of the spot Bitcoin ETF, which many investors feel is priced out. But in the first sixty days of ETF trading, the price of Bitcoin surged dramatically, suggesting that the market was unable to completely anticipate the impact.
According to Balensweig, specific occurrences cause actual shifts in the dynamics of supply and demand in exchange order books. He claimed that this trend will be best illustrated by the impending halving:
The dynamics of supply and demand in exchange order books are significantly altered as a result of these particular events. "Regardless of what trading activity looked like prior to the event, when spot Bitcoin ETFs were approved, committed capital was poised to pour into these products, increasing buy-side pressure and thereby altering the price.”
Investors will attempt to position themselves ahead of the impending halving. However according to Balensweig, "assuming that the demand will remain constant and the daily supply would decrease in the exchange order books when the event occurs, this will again lead to buy-side pressure because The sell-side is less powerful."
April 2024, Cryptoniteuae