Historically, halvings have proven to be important catalysts for bull markets, and while the impact is waning, the upcoming halving is likely to prove important to Bitcoin's price development. (Thorbjörn Bull Jenssen - CEO of K33)
A short excerpt from his article on Bitcoin halving:
▪️Demand is critical.
The price of BTC is always determined by pure demand. Given a certain amount of Bitcoin available at any given time, its value must adjust until investors realize their desired allocation, expressed, for example, in dollars.
▪️Hodlers are completely in the “game”.
Imagine all existing coins being held by strong hands rather than being sold. Miners have to sell to cover costs, but no one is forced to buy. Reducing the supply of new Bitcoins by half for a given rate of new dollars flowing into Bitcoin will result in the price doubling. Once the price doubles, half the number of coins will be enough to absorb the incoming dollars.
Halving draws attention to the Bitcoin shortage.
The current halving is drawing attention to the absolute shortage of Bitcoin at a time when it is more accessible to investors than ever before thanks to the approval of ETFs in the US.
▪️ The upcoming halving is a known event and, according to the efficient market hypothesis, should be factored into the price.
Minimal attention should be paid to the halving itself, but rather focus on market demand
- the author summarizes.
