Crypto News- Bitfinex CTO and Tether CEO, Paolo Ardoino, sounded a note of caution regarding the upcoming bitcoin halving, highlighting the challenge of predicting its impact on prices. Speaking at a recent online event hosted by Bitfinex, Ardoino emphasized the surge in demand driven by spot bitcoin exchange-traded funds (ETFs), complicating price forecasts.
Tether CEO Paolo Ardoino on Bitcoin Halving: Price Predictions Elusive
Ardoino pointed out that current bitcoin demand already surpasses mining output, particularly with institutional and ETF-driven demand outpacing supply. Despite the halving’s reduction of miner rewards, Ardoino suggested that the majority of bitcoins have already been mined, altering the perception of its impact.
While Bitfinex’s influence as a centralized exchange has waned, its affiliated stablecoin USDT remains a staple in bitcoin trading, boasting a market capitalization of $103 billion. The impending halving, scheduled for April, is expected to halve miner rewards from 6.25 to 3.125 bitcoin per block.
Recent data from BitMEX underscores the staggering inflows into spot bitcoin ETFs, with issuers like BlackRock seeing daily inflows exceeding miner rewards. CoinShares’s Head of Research, James Butterfill, highlighted the significant influence of spot bitcoin ETFs on recent price trends, noting their consumption of 2,800 bitcoins per day by the end of February.
The approval of eleven spot bitcoin ETFs by the Securities and Exchange Commission in January further underscores the growing impact of institutional investment vehicles on the cryptocurrency market. As the halving approaches amidst surging demand from ETFs, uncertainty looms over bitcoin’s price trajectory, echoing Ardoino’s sentiments of unpredictability.
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