Key Points
- Tether CEO Paolo Ardoino has said that the next bitcoin halving could have an unpredictable impact on prices.
- Spot bitcoin exchange-traded funds (ETFs) are increasing demand, which could influence the price of bitcoin.
Paolo Ardoino, the CTO of Bitfinex and CEO of Tether, has stated that the next halving of bitcoin could have unforeseen effects on its price. This is due to the increasing demand for bitcoin, driven by the rise of spot bitcoin exchange-traded funds (ETFs).
Bitcoin Halving and Price Predictions
Ardoino made these remarks during an online event hosted by Bitfinex. He noted that the demand for bitcoin is already exceeding the current mining output. He further explained that while the mining output will reduce by half due to the upcoming halving, the majority of bitcoins have already been mined.
Tether, which has a market capitalization of $103 billion, remains the most widely used stablecoin for bitcoin trading. The next bitcoin halving event is expected to occur in April, which will reduce the miner rewards from 6.25 bitcoin per block to 3.125.
The Impact of Spot Bitcoin ETFs
On average, 900 bitcoins are mined daily on the Bitcoin network. After the halving, this number will decrease to 450. However, the daily inflows of some spot bitcoin ETF issuers are exceeding these figures. For instance, BlackRock reported 4,886 BTC ($345 million) in inflows on a single day.
James Butterfill, Head of Research at CoinShares, stated that spot bitcoin ETFs consumed 2,800 bitcoins per day at the end of February, significantly impacting recent price trends. In January, the Securities and Exchange Commission approved eleven spot bitcoin ETFs.