Halving and Bitcoin ETFs to Set Course for Cryptocurrency in Next Phase
With the market catching up, FOMO investors are racing to acquire as much digital currency as possible, especially Bitcoin, whose price trajectory is nothing but on the rise.
This surge has pushed the digital currency market to surpass a market capitalization of $2.25 trillion. Currently, optimism prevails in the market, raising the question: Will Bitcoin surpass its previous price threshold, or is it too early to speculate?
In this context, Walid Abu Zaki, the founder and CEO of Unlock Blockchain, shared insights in a conversation with Asharq News regarding this matter.
Walid initiated the discussion by stating, “Two fundamental factors are driving Bitcoin’s movement: the upcoming halving event in April and the impact of the launch of Bitcoin exchange-traded funds (ETFs). These factors are crucial in determining Bitcoin’s direction in the next phase. Additionally, we are entering a bullish market phase after two years or more of volatility.”
He further elaborated, “The current increases are the result of massive demand for Bitcoin, unprecedented in the past. For example, if we look at the daily trading volume of Bitcoin today compared to a month ago, we find that trading has quadrupled within one month, from around $50 billion to over $202 billion.”
Regarding the market’s resilience to the volatility that has always accompanied this sector, Walid commented, “The market will continue to experience fluctuations, sometimes due to technical reasons such as when the CoinBase platform faced a technical glitch or when a platform is hacked. Other times, it’s due to market players intervening to reap profits and legal actions that do not align with investor expectations. However, the overall market trend is upward, supported by significant demand and diminishing supply.”
He explained further, “By a simple calculation, 900 Bitcoins enter the market daily (which will halve in less than two months), but demand has exceeded 10,000 Bitcoins daily in the past two days alone. Instant trading funds have acquired over 150,000 Bitcoins in a trading period of less than a month. Therefore, with ongoing volatility, the market will continue to rise, and we are at the beginning of a phase.”
On the other hand, when asked about some observers’ predictions of sharp increases followed by significant fluctuations that could signal a major correction of up to 20%, Walid dismissed the likelihood of a significant correction. He noted, “The Bitcoin price has become relatively high, so a 2% or 3% increase or decrease is significant. The increases are logical; instant trading funds have injected over $9 billion into the Bitcoin network in this short period, in addition to the efforts of many institutions to acquire this asset.”
Walid also highlighted an overlooked development, mentioning that Carson Group, managing assets of about $30 billion, has been approved to offer trading fund services to individual traders.
With this in mind, the future looks bright, and Bitcoin is increasingly seen as digital gold with each passing day.
