Binance CEO Richard Teng emphasized that this year’s bitcoin halving is taking place against a backdrop of positive developments, including breakthroughs such as the ETF (Exchange-Traded Fund) advancements, which have spurred institutional interest and participation in the cryptocurrency realm, The Block reported.
Additionally, he pointed to the burgeoning activity in Layer 2 and DeFi (Decentralized Finance) sectors on the Bitcoin network, propelled by the popularity of protocols like Ordinals and Bitcoin inscriptions.
Historically, bitcoin’s price has demonstrated an upward trend in the six months following each halving event. With the halving occurring roughly every four years, it slashes the number of bitcoin rewards distributed to miners by half. Teng suggested that this reduction in the supply of new coins could be a contributing factor to the market’s response to each halving event.
However, Teng cautioned that the extent of future growth hinges on various factors, including overall market sentiment and adoption rates. He highlighted the impact of bitcoin ETF approvals in driving up demand for the cryptocurrency and expanding its accessibility.
While expressing optimism for Bitcoin and the broader crypto market, Teng advised investors, especially newcomers, to temper their expectations. He stressed that immediate price fluctuations following the halving should not be overemphasized, as the fundamental significance of the event will manifest over longer-term trends in value, liquidity, adoption, and the acceptance of crypto as an asset class.
The Bitcoin halving is slated to take place tonight, reducing the rewards per block from 6.25 BTC to 3.125 BTC for the subsequent four years. Investors and enthusiasts are encouraged to track the countdown for the event.
