Quick Take
In 2024, the crypto market is set to witness two major events: the introduction of a Bitcoin spot ETF in January and the halving of Bitcoin block rewards in April. While both events will significantly influence the industry, the degree to which each event will affect market prices still remains a subject of analysis.
Our preliminary calculations reveal that the Bitcoin halving will slash the daily supply from 900 BTC to 450 BTC. Given the current Bitcoin price of $44,000, this amounts to an annual impact of approximately $7.23 billion.
On the other hand, Galaxy Digital’s research note predicts that the spot Bitcoin ETF might draw around $14.4 billion of inflows within its first year of trading. If these predictions hold, the spot ETF, when viewed in isolation, could potentially have a more substantial impact than the halving.
However, it is crucial to consider the combined effect of these events. Initially, the spot ETF will likely induce a demand shock, closely followed by a supply shock resulting from the Bitcoin halving. The complex interplay between these two events could produce outcomes that exceed the sum of individual effects.
The post What will have a bigger impact on Bitcoin in 2024: the spot ETF or the halving? appeared first on CryptoSlate.