Bitcoin Upcoming Halving to Create New Entry Point: Token Bay Capital

Show Transcript
Bloomberg Apr 17 03:21 · 69.5k Views

Lucy Gazmararian, founder and managing partner of Token Bay Capital, discusses what the upcoming Bitcoin halving means for the market. The halving will reduce new supply of the token in half and is expected around April 20. Gazmararian speaks on *Bloomberg: The China Show."

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more

Transcript

  • 00:00 We've been talking about,
  • 00:01 you know, what this Bitcoin having means.
  • 00:03 How do you think this cycle differs from previous ones that we've seen in the past?
  • 00:08 There are a couple of combinations.
  • 00:09 There are a couple of big factors actually.
  • 00:11 There's really sort of setting this carving apart from the rest.
  • 00:15 Aside from just the whole industry itself maturing every four years, we see incredible building and innovation that continues to sort of accelerate
  • 00:24 regardless of whether media retention is on the price of the coins themselves, the building continues unabated.
  • 00:31 But the real sort of
  • 00:33 differentiator I would say, in this halving
  • 00:36 is the entry for the access for institutional investors to come in, in a meaningful way.
  • 00:42 And the way that they're able to do that is through the new spot Bitcoin ETS that we saw launched in the US in January.
  • 00:50 Now there's an easy compliant way to get exposure to the asset class.
  • 00:54 They don't need to be concerned about the operational texts of how to custody these Bitcoin
  • 00:59 and so it can become a long term play for institutional asset managers,
  • 01:04 but it can also become a trading tool for crop traders, for hedge funds and really it's just deepening interest in the market
  • 01:12 and and maturing
  • 01:14 effectively the whole Bitcoin ecosystem.
  • 01:17 So
  • 01:18 and also of course the ETFs are going to enable retail to have easy access.
  • 01:22 So this new entry point for these
  • 01:25 key players I think is, is,
  • 01:28 is quite an incredible moment and we've seen the demand in just the first few months of launch.
  • 01:34 We're into the Billy.
  • 01:35 Now of
  • 01:36 flows and in the words of Larry think himself it's the fastest growing.
  • 01:40 ETF in history
  • 01:43 and so do you think this having, I mean is, is that's what's been driving the Bitcoin price, was it more the ETF store?
  • 01:47 I'm just wondering, you know, does this having have
  • 01:50 you know, prompt more gains
  • 01:52 to really lift Bitcoin a bit higher or do you think a lot of this been priced in already?
  • 01:57 So the halving is an anticipated event.
  • 01:59 It's programmed into the software.
  • 02:01 We know that from day one.
  • 02:03 It's a, it's a feature of Bitcoin and the way that the network
  • 02:07 works, the way that it controls inflation.
  • 02:10 And so
  • 02:11 it's priced in to the extent that we've seen the the patterns.
  • 02:16 But what's different on the pricing front with this halving is actually we've seen Bitcoin reach all time highs before the halving and that's somewhat unusual
  • 02:25 bearing in mind we've only had three halving and we've got 64 more harbings to go.
  • 02:29 So you know as we go along we're going to be able to see more patterns.
  • 02:32 We're still very early innings here in terms of sort of looking too much
  • 02:37 in the past price movement action,
  • 02:39 but but also you know we've seen it reach all time highs, but again Bitcoin softening
  • 02:44 price wise as we're coming into the harbings.
  • 02:46 So
  • 02:47 you know, nothing too out of step with what we've seen in previous cycles.