Galaxy Digital, headed by billionaire Mike Novogratz, features a Bitcoin halving event, which is another tool for evaluating digital currency. In contrast to previous cycles, now, when Bitcoin couldn’t reach the old maximum level at the time of halving, it can be considered a fact. While on $73,737 as of March 14, Bitcoin was down by 5.9% the next day. Halving, which is scheduled for April 19th, 2020, will reduce mining rewards from 6.25 BTC to 3.125 BTC.
ETFs impact Bitcoin halving cycle dynamics
Bitcoin, like the previous halving, is experiencing a consistent daily increase in price, and it is at new heights every day. However, the fashion direction currently shifts rather off the course. The thing that distinguishes this halving cycle from the earlier ones is that Cryptocurrency has not yet been able to cross the limits of its growth, which came after every halving event and in an earlier cycle. The last Bitcoin halving occurred in May 2020, and the price of $9,000. It reached $69,000 in November 2021. It indicates that the bullish cycle expansion was prolonged.
Galaxy Digital notes that since the start of January, when crypto exchanged traded funds (ETF) came into the market, the market breadth has developed another side. These ETFs, which have been branded as “a new benchmark for demand,” Coinbase asserts, may have the effect of transforming standard dynamics of the halving event. However, it is difficult to make a precise assessment using scarce historical data, but Bitcoin enthusiasts are satisfied that it may still hit a new high after Bitcoin halving.
Galaxy Digital forecasts Bitcoin to surpass Gold
Novogratz perceives Bitcoin overcoming its initial function as “the new Gold” and, therefore, not only competing for the bulk of money that is under the control of baby boomers but also fighting for this money. This forecast implies the tendency of the market to move in the direction of what investors prefer, which suggests that digital forms of gold are gaining favor over regular gold. The proliferating of Bitcoin as a way of payment will be the basis underlying the transition from the standard funding model.
For Galaxy Digital, the things ahead of this Bitcoin halving episode are diverse because we are moving to a different Bitcoin market stage in which the ETFs will play the lead role. Novogratz’s forecast indicates that the digital currency is to exceed the gold value. Therefore bitcoin is increasingly becoming an inseparable element of the investment process, which forces the emergence of digital assets.
Source from: https://funds.galaxy.com/insights/march-2024-market-commentary
