Bitcoin price halving will stir next frenzy on cryptocurrency: Exchange
Halving occurs every four years, slowing the rate at which new tokens are created. Some argue it leads to Bitcoin price gains, a topic of much debate.
Another pronounced bull run for Bitcoin is coming in 2024 when the world's largest cryptocurrency goes through another halving, according to Thailand's largest digital-asset exchange. Halving occurs every four years, slowing the rate at which new tokens are created. Some argue it leads to Bitcoin price gains, a topic of much debate. Jirayut Srupsrisopa, chief executive officer of Bitkub Capital Group Holdings, said past trends suggest a“golden period” for Bitcoin -- and cryptocurrencies more generally -- in 2024-2025, six months after the next halving.
But first digital tokens may endure a short period of “corrections” and “high volatility” as tightening liquidity is squeezing fund inflows, especially from retail investors, he said.
Jirayut, 31, also argued the cryptocurrency market has changed because of a “big increase” in institutional interest. He co-founded Bangkok-based Bitkub, which was valued at $1 billion in November.
Bitcoin price has shed about $30,000 in value since hitting a record high of almost $69,000 in November last year. Some attribute the decline to the prospect of receding Federal Reserve stimulus, which bolstered a range of assets during the pandemic.
Regulators are also tightening oversight, including in Thailand, which plans to ban the use of digital assets in payments for products and services.
Thai commercial banks have also been told to avoid “direct involvement” in cryptocurrencies. The nation will start collecting tax on profits from trading digital assets.
“Regulators are trying to use the old framework to govern new invention,” Jirayut said. “That doesn't always work. Countries without the right policies would drive innovation away, push the opportunity away.”