Bitvavo CEO Comments on Bitcoin Dynamics Ahead of 2024 Halving and Business Expansion Plans
Summary:
Bitvavo CEO Mark Nuvelstijn has asserted that supply and demand dynamics would ease potential Bitcoin market shocks ahead of the 2024 mining reward halving. Speaking at the European Blockchain Convention in Barcelona, he said a price increase would help align demand and supply. He also addressed the potential influence of Bitcoin ETF applications in the US on Bitcoin's value and discussed Bitvavo’s expansion plans into France, Spain, and Italy. Nuvelstijn expects the European Union’s Markets in Crypto-Assets (MiCA) will improve market maturity and business operations.
Potential perturbations in the Bitcoin market due to the looming mining reward halving in 2024 may be offset by supply and demand dynamics. Bitvavo's CEO, Mark Nuvelstijn, put forward this assertion in a dialogue with Cointelegraph at the European Blockchain Convention in Barcelona.
Nuvelstijn, the co-founder of the Dutch crypto exchange, trusts that the available Bitcoin supplies at exchanges should suffice the user demand. He stated, "As the demand escalates, the price will follow suit until a market equilibrium between price and demand is achieved."
Nuvelstijn indicated that a surge in Bitcoin demand, resulting in escalated prices until a balanced market is reached, would not leave exchanges out of BTC for trade. He expressed, "As a neutral platform, our role is simple – synchronize buying and selling orders to facilitate transactions. Booming Bitcoin demand is beneficial for the whole sector."
Nuvelstijn also discussed the potential impact of newly submitted Bitcoin ETF applications in the United States this year on Bitcoin's value. He pointed out, "We have noticed a growing interest and attention in the crypto market. The drastic surge in Bitcoin prices in the last fortnight (rising by 20 to 30 percent), manifests this."
Bitvavo has witnessed more web traffic and active users on their platform and app, and the addition of new clients. However, these figures have yet to surpass those of 2021, asserted Nuvelstijn. He noted, “ETFS have not yet received approval, right? So the recent activities are just precursors. The pivotal event is yet to occur.”
Furthermore, Nuvelstijn expanded that Bitvavo, while primarily targeting the Netherland and Belgium, is planning a steady expansion into other markets including France, Spain, and Italy. Additionally, he thinks that the European Union’s Markets in Crypto-Assets (MiCA) will promote market sophistication and ease of business operations: “This will liberalize the European market and obviate the requirement for country-specific licenses. The harmonized regulation will expedite cross-border business.”
Nuvelstijn anticipates MiCA to set the course for crypto firms to provide more financial services, akin to traditional fiscal regulations: “This will ease the process for crypto firms to offer monetary services and for financial services to incorporate crypto services. I foresee more blending of these business models.”
A July 2023 Standard Chartered analyst report alludes to an increase of institutional demand for Bitcoin, potentially pushing the BTC price up to approximately $120,000 by year-end. This predicted increase is attributed to a rise in mining profitability, reducing the need for the sale of mined coins.
Published At
10/31/2023 10:40:32 AM
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