As the highly anticipated Bitcoin halving of 2024 approaches in the next few hours, Binance CEO Richard Teng expresses excitement over this event’s uniqueness due to various favorable occurrences within the cryptocurrency market. In an interview, Teng explained, “This year’s halving stands out because it coincides with a string of other noteworthy developments in Bitcoin and the broader crypto sector.”
ETF Breakthroughs Fuel Institutional Interest
Teng mentions some pivotal occurrences, among them being this year’s Bitcoin halving occurring following the achievement of Bitcoin ETF approval – an event that sparked increased institutional investment and involvement in the digital currency market.
Furthermore, the Binance CEO mentioned the increasing usage of Layer 2 solutions and Decentralized Finance (DeFi) apps on the Bitcoin blockchain. This trend is driven by advancements such as the Ordinals protocol and the ability to make Bitcoin inscriptions.
According to Teng’s analysis, the price of Bitcoin typically rises during the six months following a halving event due to decreased supply of new coins. This reduction puts pressure on prices and makes the cryptocurrency more scarce. A recent report from Bybit supports this theory, suggesting that scarcity after the halving could influence Bitcoin’s price positively.
The head of Binance issued a note of warning: the degree of future expansion hinges on several elements, such as market mood and pace of acceptance. Thus, potential investors should practice caution due to the market’s unpredictability.
New approvals of Bitcoin ETFs are fueling increased interest in Bitcoin from investors. While this is a positive sign for Bitcoin and the crypto market as a whole, Teng cautions that investors, particularly those new to the scene, should keep their expectations in check.
Bitcoin Halving 2024: Teng Urges Managed Expectations
Instead of anticipating instant price changes following the halving, it’s important to remember that this event may take time before its full effect is seen. The true significance will be reflected in future market conditions, influenced by factors such as value, liquidity, the growing adoption of cryptocurrencies, and their acceptance as a legitimate asset class.
Teng’s recommendation aligns with the warnings given by analysts regarding Bitcoin’s price surge before the imminent halving event in 2024. With a gain of over 50% already this year, experts advise investors to exercise caution when making new investments.
With Bitcoin’s halving event approaching in 2024, the amount of new bitcoins generated as a reward for mining each block will be reduced from 6.25 bitcoins to 3.125 bitcoons over the subsequent four years.
The decrease will affect the mining difficulty, which is a measure of how challenging it is for miners to solve intricate puzzles and discover a hash value lower than the target established by the system in the Proof of Work (PoW) mechanism. Some experts view the halving event as Bitcoin’s deflationary monetary policy through its protocol, adding to its reputation as digital gold and a safeguard against inflation.
Read More
- CORE PREDICTION. CORE cryptocurrency
- Top gainers and losers
- SYS PREDICTION. SYS cryptocurrency
- KUNCI PREDICTION. KUNCI cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- CFG PREDICTION. CFG cryptocurrency
- Best coins for today
- DOGE PREDICTION. DOGE cryptocurrency
- THOR PREDICTION. THOR cryptocurrency
- STFX PREDICTION. STFX cryptocurrency
2024-04-19 19:15