“The halving tends not to be priced in,” says BitGo CEO: The event will see “real changes”

Just days before Bitcoin halving, which will cut miner rewards in half, Matt Ballensweig, head of BitGo, claimed that the halving is still not priced in. Ballensweig defended his argument by using ETFs as an example.

“The halving tends not to be priced in,” says BitGo CEO: The event will see “real changes”

Matt Ballensweig, who resigned from Genesis during the crypto crisis in 2022 and joined BitGo, stated that the halving, which was eagerly awaited by the cryptocurrency world, is still not priced in.

“Look at what happened with ETFs”

Speaking to US media outlet The Block, Ballensweig cited the example of ETFs approved in the US in January and said:

“Digital asset investors and traders constantly ask the question ‘is the halving priced in’ and each cycle it tends to not be. Similarly, many investors thought the spot bitcoin ETF approval was also priced in, but over the first 60 days of ETF trading the bitcoin price rallied considerably,”

“These particular events lead to real changes”

Ballensweig said that certain events trigger major shifts in the supply-demand dynamics on the boards of stock exchanges and he thinks the upcoming halving will do the same:

“These particular events lead to real changes in supply and demand mechanics on exchange order books, as when the spot bitcoin ETFs were approved, there was committed capital ready to flow into those products, causing bid-side pressure and thus impacting price regardless of what trading activity looked like ahead of the event,”

“The price will increase”

Stating that there will be less daily supply in the exchange order books after the halving, BitGo manager stated that this will push the price up:

“But when the event occurs, there will be less daily supply on the exchange order books and assuming constant demand, that will again lead to bid-side pressure as the sell-side is thinner.”

Coinbase analysts: “The effect has already been priced in”

The Block asked the same question to David Duong and David Han, two analysts at the Coinbase exchange. The analysts noted that this halving is different from previous ones and said that pricing is happening:

“This is the first halving cycle which saw bitcoin breach its all-time high before the halving, which could mean that the effect has already been priced in by savvy traders,”

After the halving, which is expected to take place on Saturday (April 20), miners’ rewards will decrease from 6.25 BTC to 3.125 BTC per block.

At the time of writing, Bitcoin is hovering around $66,500.

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