By
Godfrey Benjamin
April 30th, 2024
Richard Teng cautioned that the extent of future growth will depend on various factors, including overall market sentiment and rates of adoption.
With the much anticipated Bitcoin halving 2024 just hours away, Binance CEO Richard Teng says the event is unique given the several positive occurrences within the cryptocurrency space. In an interview, Teng noted that “this year’s halving is unique in that it comes amid a series of other significant events in the Bitcoin and wider crypto ecosystem.”
ETF Breakthroughs Fuel Institutional Interest
Some of the significant events referenced by Teng include the fact that this year’s halving is taking place after the recorded breakthrough in Bitcoin exchange-traded funds (ETFs), which has catalyzed institutional interest and participation in the cryptocurrency space.
Additionally, the Binance CEO referenced the growing activity in Layer 2 solutions and Decentralized Finance (DeFi) applications on the Bitcoin network. These are fueled by innovations like the Ordinals protocol and Bitcoin inscriptions.
Commenting on the expected price trajectory, Teng said historically, Bitcoin’s price has tended to increase in the six months following each halving event. He attributes this trend to the reduction in the supply of new coins resulting from the halving, which creates upward pressure on prices. To solidify this position, a recent Bybit report predicts Bitcoin supply scarcity after halving which may affect the price.
The Binance boss, however, cautioned that the extent of future growth will depend on various factors, including overall market sentiment and rates of adoption. This implies that investors must exercise caution given the volatility of the market.
The recent approvals of Bitcoin ETFs have already stimulated demand for BTC to expand its reach among investors. Teng believes that although these developments paint an optimistic picture for Bitcoin and the broader crypto market, it’s crucial for investors, especially newcomers, to manage their expectations.
Bitcoin Halving 2024: Teng Urges Managed Expectations
He advises against expecting immediate price shifts in response to the halving, emphasizing that its true impact will be reflected in longer-term trends relative to value, liquidity, adoption, and the acceptance of crypto as an asset class.
Teng’s advice is consistent with the position of analysts on the Bitcoin price which had a massive run-up ahead of the upcoming Bitcoin halving some hours away. After a massive 50% and more rally so far in 2024, analysts have advised caution to investors building fresh positions.
As Bitcoin halving 2024 inches closer, the rewards per block will decrease from 6.25 BTC to 3.125 BTC for the next four years.
This decrease will impact the mining difficulty, which is a measure of how hard it is for miners to solve complex puzzles and find a hash lower than the target set by the system in the Proof of Work (PoW) system. Some analysts see the halving event as Bitcoin’s protocol deflationary monetary policy, contributing to its labeling as digital gold and a hedge against inflation.