Fourth Bitcoin Halving and the Effects of ETF Developments
The block rewards of Bitcoin has decreased to 3.125 Bitcoin, following the fourth halving of Bitcoin. Regardless of what the importance of the Bitcoin halving is, and how it causes increase in the Bitcoin price; there are speculations that these halving may start experiencing diminishing effects.
But aside from Bitcoin's halving, there are other sectors of Bitcoin, that could create more interest and attraction; and cause an increase in price of Bitcoin in the future. At the beginning of 2024, the US Securities and Exchange Commission (SEC) agreed for spot Bitcoin ETFs to start running in many local exchanges.
This caused the price of Bitcoin to surge within a couple of months. The price of Bitcoin was almost doubled in value, and its price hit a new all time high. This happened before the halving. But these inflows soon came to a stop, and Bitcoin price plunged by about $10,000. Indicating that ETFs are pivotal to the continuous surge of Bitcoin.
Even though the inflows have plunged in the United States, Hong Kong is setting up to begin spot Bitcoin and Ethereum ETFs. The effect of Hong Kong's launch may not be massive, because of it's smaller market size. But crypto experts predicted that Hong Kong's launch of EFTs, may trigger a ripple effect in the Asian continent, and other countries in that region may begin to launch ETFs.
I guess the bitcoin halving didn't really have the effect as we are all expecting. Every one of us was expecting there will actually be a surge up
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