Bitcoin’s upcoming halving event in May is currently a hot topic in the market, according to Kris Marszalek, the CEO of Crypto.com. Marszalek agrees with Bloomberg media’s prediction that there could be a sell-off before the event. However, he points out that this “buy-the-rumor, sell-the-news” pattern has occurred in the past and believes that any initial price decrease will be outweighed by long-term gains.
Marszalek emphasizes that while there may be short-term reactions, the gradual reduction of the mining reward will ultimately put upward pressure on the price. The halving reduces the amount of new Bitcoin entering circulation by half, which creates a divergence in supply and counteracts the initial selling pressure.
Industry leaders have also weighed in on the potential impact of the halving. Marathon CEO Fred Thiel suggests that the market may have already priced in some of the effects of the event, but its true influence on prices remains to be seen. Thiel also speculates that the approval of post-ETF funds may have contributed to the recent rally in Bitcoin’s price.
On the other hand, billionaire and crypto expert Arthur Hayes is skeptical about the halving’s impact. He believes that both pre- and post-halving activities could move against bullish expectations, leading to a decrease in price rather than an increase. This difference in opinion highlights the ambiguity and diversity of viewpoints that surround market-based outcomes.
Despite the varying opinions on short-term price fluctuations, the overall sentiment is optimistic about long-term gains from the halving. Ripple CEO Brad Garlinghouse shares this bullish view and predicts that the total market capitalization of cryptocurrencies will double this year. The introduction of new Bitcoin spot ETFs and the halving event are expected to drive prices higher.
Marszalek adds to the optimism by expressing hope for heavy speculation and significant price movements in the Bitcoin market in the six months following the halving. He believes that the changes in the mining reward structure, coupled with miners’ efforts to innovate and update their equipment, will create a situation where the scarcity of coins increases and prices rise.