CEO of Bitwise Hunter Horsely has caused a storm in the cryptocurrency community with his latest statement. Horsely pointed out the future Bitcoin halving event, which he compared to the previous one of 2020. By the time, Bitcoin was sold at about $9,000. With Bitcoin now in the region of $70,000, the reduction in the supply of dollars expected to take place soon would be much greater than all such events in the past. This halving scheduled on April 19 is expected to be a key bullish driver for Bitcoin’s price.

Horsley’s comparison emphasizes the extent of the upcoming halving. This occurrence is expected to apply upward pressure on the price of the cryptocurrency when the generation of new bitcoins is reduced. The last halving in 2020 brought huge price gains, and optimism is mounting that the next halving could propel Bitcoin’s value even further.

Bitcoin Halving to Impact Mining Hashrate

The forthcoming Bitcoin halving has a context that encompasses more than just the event itself. Prior to the last halving, the Federal Reserve had put in place a zero-interest rate policy and initiated a huge quantitative easing program. These steps, in turn, affected many markets, including the cryptocurrency market. Now, with the Federal Reserve considering a rate cut, similar scenarios could impact the world of cryptocurrencies. This guessing, though, leads to the question of how successful the desire for newly issued Bitcoin ETFs will be.

Also, a study by Hashrate Index indicates that 3 to 7% of Bitcoin’s hashrate might get disconnected after the halving if the price stabilizes or grows moderately. This change in the difficulty of mining can have certain implications for miners. If the cost of Bitcoin falls substantially, it might need to improve its effectiveness and also hedge against volatility and operational risks.

Bitwise Files S-1 for Ethereum Spot ETF

Lately, Bitwise made a milestone by filing the S-1 form with the U.S. Securities and Exchange Commission (SEC) for an Ethereum Spot exchange-traded fund (ETF). This action demonstrates the company’s resolve to move through the rollercoaster of the legal regime. It seeks to further the success of spot Bitcoin ETFs, which have delivered impressive trading volumes upon their debut. The move emphasizes Bitwise’s dedication to broadening investment opportunities in the cryptocurrency field.

This is a key step in Bitwise’s initiative to provide investors with direct Ethereum asset exposure. Spot ETFs offer a more direct relationship with the underlying asset, unlike futures-based ETFs. This kind of approach is based on the company’s philosophy of providing innovative investment solutions.

Read Also: CFTC Commissioner Critiques KuCoin Lawsuit Amid SEC Clash

The post Bitwise CEO Predicts Monumental Bitcoin Halving Impact appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am