Only 32 days left until the Bitcoin halving! Most mainstream exchanges are optimistic about the market after the halving.

The highly anticipated Bitcoin block reward halving is expected to occur at some point next month. In light of this, overseas media outlet The Block has conducted a series of interviews with several well-known global exchanges to explore the potential impact that the block reward halving may have on the market.

The Halving Will Bring New Participants to the Market

The "Bitcoin halving" is a significant event that has attracted industry attention. When the Bitcoin block height reaches 630,000, the number of BTC produced per new block will decrease from 12.5 BTC to 6.25 BTC. The halving occurs approximately every four years, aiming to ensure deflation and scarcity of Bitcoin. When the total supply of Bitcoin reaches the predetermined total of around 21 million coins, no new Bitcoin will be produced in the world.

Dave Ripley, COO of the U.S. cryptocurrency exchange Kraken, pointed out in an interview that one expected outcome after the halving is that the market will see new participants:

"Historically, Bitcoin prices have shown significant increases within 1.5 years after a halving, so it is very likely that we will see new participants in the market after the halving."

Prices Surge After Each Halving in History

Ray Youssef, Co-Founder and CEO of Paxful, agreed with Ripley's thoughts and added that after each historic Bitcoin halving, there has been an unprecedented surge in demand and price. However, Youssef also emphasized that past patterns do not guarantee future occurrences.

According to a chart compiled by The Block Research based on Coin Metrics data, in the previous two halvings (November 2012 and July 2016), Bitcoin prices surged by over 8,000% and over 600% within a year, respectively.

On the other hand, Lennix Lai, Financial Market Director of OKEx, explained that the Bitcoin halving can be understood as a "quantitative tightening" for cryptocurrencies.

"Competition among miners is expected to intensify. While the most efficient miners will have an advantage, we believe that the demand for miner-oriented financial products will increase, helping miners manage their price risks and expected cash outflows."

The Pandemic's Impact on the Halving Market

However, this halving coincides with a large-scale pandemic. If the spread of the COVID-19 continues, the impact that the Bitcoin halving can bring may not be as expected. Bitstamp, a cryptocurrency exchange from Europe, stated:

"Although in the long term, the halving will certainly have a positive impact on the market, in the short term, it is likely to be overshadowed by the pandemic's effects."

Related Reading

• Can't Wait for the Halving Effect? China's Top Mining Pool "BytePool" Reportedly Exiting
• Global Easing, New Low Interest Rates, Will Bitcoin, about to Halve, Become a Safe Haven Choice?

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