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

2024-04-17

Key Takeaways

  • 80% of Binance Australia 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.

  • Knowledge of the halving is high amongst surveyed users - 85% rated their knowledge as high or very high.

  • 71% were bullish the 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 2,000 Binance Australia users. (1)

The research revealed more than 80 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 approximately 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 and thus present a hedge to counteract inflation. 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. 

“Pleasingly, our Australian users are incredibly clued up on the halving, with 85 percent self-rating as knowledgeable. The research findings also show halving has a positive impact on BTC trading, with almost 80 percent of Binance Australia 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 inbuilt inflationary hedge. 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 the crypto can play as part of a diversified investment portfolio. 

“We have an incredible opportunity here in Australia to continue to grow our digital asset industry, and popular events such as this are an ideal time to get more Australians educated and involved in crypto,” Mr Rose said. 

Unprecedented investor demand 

This year's halving event is a unique milestone moment due to unprecedented US capital market participation demand driven by the launch of spot BTC ETFs by leading global institutional investment houses, including BlackRock and Fidelity to cater to their customers. Since the spot BTC ETFs were listed in January, they have become; the most successful ETF debuts on record. (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 71 percent of those we 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,” Mr Rose said. “The launch of ETFs and growing institutional participation has heightened interest from mainstream investors and positively impacted demand for cryptocurrency. 

“With Australian investors - from retail to institutional - increasingly turning attention to crypto, it is becoming ever more critical that Australia not delay in introducing a formal regulatory framework that both protects consumers and fosters innovation. We need to remain competitive on the global stage. 

“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 more than 70 percent of our Australian users eager to see the impacts. With sky-high demand, record-breaking prices, and a bullish investor outlook, it is a pretty exciting moment to be in crypto,” Mr Rose said.

Other findings

  • 65% 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

References

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

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