Latest research reveals investor appetite for crypto ahead of global Bitcoin Halving

Key Takeaways

• More than 75% of the over 550 Binance New Zealand users surveyed felt the upcoming BTC halving is positive for the industry.

• Recent unprecedented investor demand following the approval of Bitcoin EFTs in the US has seen the price of BTC increase in the first few months of 2024.

• Over 80% of those surveyed stated they were looking to increase their BTC holdings in the near future.

• 67% were bullish the bitcoin price will continue to increase over the coming six months.

Latest research reveals investor appetite for crypto ahead of global Bitcoin Halving

Improved investment sentiment, higher valuations, and increased trading volumes are anticipated ahead of the imminent Bitcoin halving, according to our most recent survey of more than 550 Binance New Zealand users. (1)

The research revealed more than 75 percent of respondents believe the upcoming halving to be positive for the industry, while more than half expect the price of Bitcoin (BTC) to increase as a direct result. 

Occurring roughly every four years, halving events are built into the BTC algorithm and cut the reward for BTC mining by 50 percent. They are an inbuilt safety guard for the asset class to maintain coin scarcity. As of writing the halving will occur in just nine days. Check out our countdown to the Bitcoin halving here.

Commenting on the bullish investor sentiment and upcoming event, General Manager of Binance Australia and New Zealand, Ben Rose, said the survey findings were a positive pulse check on the market. 

“Our New Zealand users are knowledgeable and confident investors and it’s interesting to see so many Kiwis looking forward to the Bitcoin halving event. The research findings also show the halving could have a positive impact on BTC trading among NZ investors, with over 80 percent of Binance New Zealand users planning to increase their BTC holdings in the very near future, with just under half keen to do so before the anticipated halving later this month.

“As we grapple with inflationary pressures and rising rates, the halving is an important event to keep the asset scarce. With only 21 million coins to ever exist, the asset mimics the scarcity of precious commodities, like gold. This is capturing the attention of institutional investors, who are increasingly recognising that crypto can play as part of a diversified investment portfolio.” Rose said. 

Unprecedented investor demand

This year's halving is unique as it is the first time the event is preceded by US capital markets participation - BlackRock and Fidelity are two notable financial giants that are providing their clients access to Bitcoin by successfully listing spot Bitcoin ETFs. This has increased mainstream access through traditional investment channels and boosted the potential demand for Bitcoin. Since their debut in January, these funds have garnered an impressive $11.9 billion in net inflows3, setting a new record for the most successful ETF launch to date. (2)

Heightened investor demand has also driven BTC valuations to new all-time highs, exceeding $73,000 USD per coin. This is the first time BTC’s peak has immediately preceded the halving, with 67 percent of those surveyed bullish the price will continue to increase over the coming six months

“There is no doubt we are at a pivotal moment for Bitcoin,” Rose said. “The launch of ETFs and growing institutional participation has heightened interest from mainstream investors and positively impacted demand for cryptocurrency. 

“We have not seen market conditions like this ahead of a halving event before, and this is driving a lot of excitement amongst market participants, with 75 percent of our Kiwi users eager to see the impacts. With increased demand, record-breaking prices, and a bullish investor outlook, it is a pretty exciting moment to be in crypto,” Rose said. 

Other findings

• Knowledge of the halving is high amongst surveyed users - almost 60% rated their knowledge as high or very high.

• 67% agreed that crypto was a strong investment opportunity and stated it was their preferred investment.

Learn More About The Bitcoin Halving

Bitcoin Halving - When Is The Next One?

What Happens To Your Bitcoin After The Halving?

Decoding Bitcoin Halving: Understanding the Deflationary Shift

Reference

1 Survey conducted by Binance New Zealand in April 2024 with New Zealand users via internal survey tool - Binance Surveys.

2 https://www.theblock.co/trackers/bitcoin-halving