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No concerns over Bitcoin halving supply shock, says Bitvavo CEO

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Provide and demand dynamics might mitigate issues of a possible Bitcoin market provide shock in the course of the upcoming mining reward halving in 2024, in line with Bitvavo CEO Mark Nuvelstijn.

The co-founder of the Netherlands-based cryptocurrency alternate weighed in on Bitcoin-related market actions in dialog with Cointelegraph in the course of the European Blockchain Conference held in Barcelona.

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Nuvelstijn expressed his perception that exchanges would seemingly have enough Bitcoin provide to satisfy the demand from customers:

“If there’s extra demand the worth will improve, and it’ll preserve growing till there’s a match between worth and demand.”

The Bitvavo CEO added that the potential booming demand for Bitcoin would result in growing costs till demand cools and costs stabilize. In consequence, Nuvelstijn just isn’t involved that exchanges like his would run out of BTC to satisfy buying and selling calls for:

“As a platform we’re agnostic to that. We’re simply matching purchase and promote orders to make trades potential. If there’s quite a lot of demand for Bitcoin, it’s solely factor for the sector.”

Nuvelstijn additionally weighed in on the affect of Bitcoin exchange-traded fund functions submitted in the US over the previous yr and the potential affect their approval might have on the worth of Bitcoin:

“We’ve seen extra consideration, extra curiosity within the crypto market. You noticed how steeply the Bitcoin worth elevated over the previous two weeks. It was up 20 or 30 p.c which is an enormous leap.”

Bitvavo has seen a rise in net site visitors in addition to clients visiting their platform and utilizing their app. The alternate has onboarded new clients as properly, whereas Nuvelstijn added that these numbers had been nonetheless wanting the degrees it noticed in 2021:

“As you talked about, the ETFs will not be but authorised, proper? So that is for example a pre-event. The occasion itself nonetheless must occur.”

Nuvelstijn additionally defined that whereas Bitvavo’s core markets stay the Netherland and Belgium, it’s eyeing regular growth into jurisdictions together with France, Spain and Italy. He additionally believes that the European Union’s Markets in Crypto-Property (MiCA) will drive market maturity and ease of doing enterprise:

“It should open up the European market so that you not want a license per nation. The regulation will turn into extra harmonized, which means you’ll be able to simply do cross-border enterprise.”

Nuvelstijn additionally sees MiCA laying the muse for cryptocurrency firms to supply extra monetary providers, drawing comparisons to standard monetary rules:

“It will likely be simpler for crypto firms to supply monetary providers and for monetary providers to supply crypto providers. I believe you will notice these sorts of enterprise fashions being extra commingled.”

A report from a Customary Chartered analyst in July 2023 means that rising institutional demand for Bitcoin might drive the worth of BTC to round $120,000 by the tip of the yr, pushed by elevated mining profitability which can ease the necessity to promote mined cash.

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