Dec 06, 2023

Bitcoin Halving and BTC ETF Hype: What to Expect in 2024?

The potential approval of spot Bitcoin exchange-traded funds (ETFs), the impending BTC mining reward halving, and significant regulatory and enforcement actions have a powerful influence on market prices. This was a noteworthy takeaway from the Next Block Expo meeting in Berlin, just as Bitcoin exceeded $42,000 for the first time in over a year. Animoca…

Bitcoin Halving, BTC ETF Hype Driving Crypto Prices Up into 2024 - NBX Berlin
Bitcoin halving, BTC ETF hype driving price up into 2024 — NBX Berlin

The potential approval of spot Bitcoin exchange-traded funds (ETFs), the impending BTC mining reward halving, and significant regulatory and enforcement actions have a powerful influence on market prices.

This was a noteworthy takeaway from the Next Block Expo meeting in Berlin, just as Bitcoin exceeded $42,000 for the first time in over a year.

Animoca Brands CEO Robby Yung, gumi Cryptos Capital managing partner Miko Matsumura, Binance regional manager Jonas Jünger, and Polkastarter business development lead João Leite talked about whether the ongoing crypto bear market was coming to an end in a conversation with Cointelegraph, discussing topics such as web 3.0 social media, crypto bankruptcy, crypto us, clv crypto, crypto gaming, ckb crypto, crypto alerts podcast, when is web 3.0 coming, crypto games, and web 3.0 projects.

Bitcoin halving is a psychological phenomenon

Matsumura believes that the four-year cycle between Bitcoin (BTC) mining reward halvings is akin to the rhythm of a medieval battering ram. “Every four years, we swing the ram, and we smash. Four years is long enough that the people inside the castle think we’ve gone away,” he states.

The venture capitalist also explains that the halving cycle involves a Schelling focal point mechanism, a game theory concept and social phenomenon in which people or organizations can coordinate without communication. Furthermore, Bitcoin’s stock-to-flow model demonstrates that the actual reduction in BTC supply is getting smaller with each halving, which means “the actual mathematical economic effect is smaller.”

Jünger agrees with this sentiment, drawing attention to the deflationary mechanism of the Bitcoin protocol and that there’s no similar discussion regarding the fiat money supply. Yung provides a different point of view, noting that while Animoca Brands has just two web 3.0 projects that directly work in the Bitcoin ecosystem out of some 500 investments, the preeminent crypto is still “very impactful” in what it does.

The Animoca CEO further adds that the effect is similar to any business where interest rates, employment figures and other big macroeconomic signals have an impact even if they’re not directly impacting you.

Bitcoin ETFs and consumer protection

The potential of BTC’s recent appreciation in value into the mid $40,000 range due to the pending approval of several spot Bitcoin ETFs in the United States is being widely discussed. Yung offers a brief explanation as to why this is the case:

For an exchange like Binance, the possibility of an immediate price surge is a major concern that could challenge the systems of many global exchange operators.

“These kinds of events are essential in running the exchange. It’s a matter of success or failure when it comes to providing the necessary infrastructure when the news goes out and you see that green wick,” Jünger explains.

Binance’s regional director claims that consumer protection is set to be profoundly changed with the introduction of a spot Bitcoin ETF, which provides an attractive proposition that will drive investment into the crypto gaming, ckb crypto, and clv crypto asset class:

A cautious approach

Despite the optimism around the end of crypto winter, Leite urges caution when it comes to Polkastarter’s role in supporting cryptocurrency startups through the difficult two years. “During the bull market, many companies failed to set aside a treasury, which is essential,” he explains.

For those that have made it through, they are now looking ahead to brighter times, but Leite advises for a more conservative approach. The recent $4.3 billion settlement between the U.S. Justice Department and Binance, which was seen as a positive step for the crypto industry, further reinforces the need for caution.

The crypto industry has come a long way since the launch of web 3.0 social media, crypto gaming, crypto alerts podcast and the development of ckb crypto, clv crypto and when is web 3.0 coming. Despite the progress, it is important to take a measured approach when it comes to crypto bankruptcy, web 3.0 projects and the future of the world’s largest exchange by transaction volume.

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