Bitcoin's April Halving Anticipated to Boost Ethereum Even More Amid Market Dynamics
Summary:
The upcoming Bitcoin halving in April has sparked widespread anticipation, with Julian Grigo of Safe and Joey Garcia of Xapo Bank believing it could benefit Ethereum even more. However, Alun Evans of Laos Network cautions against rapid Ethereum price escalations due to the asset's role in various applications and smart contracts. Alternately, others like Siddharth Lalwani of Range Protocol and Jordi Alexander of Mantle point to additional factors such as Ethereum's Dencun upgrade and potential ETF launches that could impact Ethereum's positive price movement.
The forthcoming Bitcoin (BTC) halving in April is brimming with anticipation due to several key developments in the cryptocurrency market. Bitcoin has witnessed three previous halvings, on November 28, 2012, July 9, 2016, and May 11, 2020. However, the upcoming one takes place after the U.S. Securities and Exchange Commission's approval of the very first Bitcoin spot ETFs in the U.S, adding to the event's buildup.
Julian Grigo, Safe's Head of Institutions and Fintech, believes the Bitcoin halving serves as a critical reminder of what sets Bitcoin apart from traditional money. Especially relevant as it coincides with a time of elevated global inflation in recent years. An asset with a distinct supply limit holds appeal for investors," Grigo explains, underscoring Bitcoin's unalterable fixed supply as opposed to fluctuating national currencies.
As per Grigo, Ethereum (ETH) embodies this principle of limited supply even more so, since its supply is actually diminishing. Hence, Grigo wouldn't be surprised if Ethereum actually benefits more from the halving event than Bitcoin.
Joey Garcia, Xapo Bank's Director and Head of Public Affairs, Policy and Regulation, also sees the upcoming halving event positively impacting Ethereum and the larger market. Emphasizing the halving’s intended design to create scarcity and deflation akin to precious metals, Garcia further notes the potential secondary benefits the halving could bring to Ethereum and the wider ecosystem.
However, Alun Evans, Laos Network's co-founder, cautions that rapid price escalations in ETH might not be entirely advantageous. As Ethereum underlies various applications and smart contracts, market unpredictability could deter both users and developers. With network costs on the rise, alternatives to improve scalability and reduce transaction fees would be a major focus for Ethereum developers.
Amid the anticipation for the halving, others are identifying alternate reasons for Ethereum's positive price movement. Siddharth Lalwani, CEO of Range Protocol, lists Ethereum's Dencun upgrade, the Bitcoin halving, and the prospect of Ethereum ETF approvals as significant market catalysts.
However, Lalwani warns that Ethereum could temporarily suffer as Bitcoin climbs to record highs, pulling liquidity from other sources. Yet, Lalwani expects a favorable inclination for crypto markets overall in 2024.
Likewise, Jordi Alexander, Mantle's chief alchemist, voices the importance of diversifying the reasons behind Ethereum's price growth, citing other contributing factors like the Ethereum Dencun upgrade and potential ETF launch.
Nevertheless, Alexander is optimistic about both Bitcoin and Ethereum as sound long-term investments. Agrees Aki Balogh, co-founder and CEO of DLC.Link, who is bullish on Bitcoin citing the upcoming halving and availability scarcity. Noting the high correlation between ETH and BTC, Balogh anticipates a secondary impact of increased ETH values if BTC continues its upward trajectory. To sum, as Grigo states, "The Bitcoin halving is a megaphone for crypto as a new asset class, with Ethereum likely to have the loudest echo.
Published At
3/12/2024 4:01:00 PM
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