According to Matt Hougan, CIO of crypto fund manager Bitwise, the upcoming Bitcoin halving is a positive catalyst for the cryptocurrency.
Historic Precedence
Hougan believes that the halving, scheduled for April 19th, could trigger a significant rally based on past events. Historically, Bitcoin’s price has surged after previous halvings.
Long-Term Benefits
However, Hougan emphasizes that the bullish effects will be most noticeable in the long term. He explains that the halving reduces the supply of new Bitcoin entering the market by half, which should positively impact its price.
ETF Impact
Hougan also expects spot Bitcoin exchange-traded funds (ETFs) to contribute to Bitcoin’s value by increasing liquidity. ETFs make it easier for institutional investors to access Bitcoin, which could attract new buyers.
Conclusion
Bitcoin is currently trading at $63,862, and Hougan believes that the combination of increased demand from ETFs and reduced supply from the halving could create a favorable environment for the cryptocurrency in the coming year.
