Kris Marszalek cautions against possible BTC sell-offs before sustainable long-term growth.
The upcoming Bitcoin halving event is expected to follow the pattern of “buy-the-rumor, sell-the-news,” according to the Crypto.com CEO.
The exec believes that in the long term, however, the halving, which is currently slated for April 20, will positively impact Bitcoin’s price.
Bitcoin Halving’s Long-Term Impact Will Be Positive
In a recent Bloomberg interview, Kris Marszalek, CEO of Crypto.com, shared his thoughts on the Bitcoin halving, saying that while there will be selling pressure initially, the long-term impact will be positive on the asset’s price.
The upcoming halving is expected to reduce the mining rewards by half, a challenge for miners. Many miners have been preparing for months, accumulating BTC and upgrading their equipment to meet the increased computational demands that come post-halving.
The halving event has been followed historically with price increases, perhaps fueled by the reduced new Bitcoin supply. Nonetheless, some skeptics doubt the likelihood of a repeat performance, especially given BTC’s recent record high in mid-March.
Despite short-term uncertainties, Marszalek remains optimistic about the six months following the halving, predicting “pretty decent action” in the Bitcoin market.
Industry Experts on Bitcoin Halving’s Impact
Last week, Marathon CEO Fred Thiel reiterated that Bitcoin’s much-anticipated halving might already be partly reflected in the market. Thiel noted that the approval of ETFs has attracted capital into the market and may have accelerated the typical price appreciation expected three to six months after the halving.
Billionaire Arthur Hayes also took a cautious stance on the upcoming Bitcoin halving and its impact on the price. While many experts anticipate a substantial rally post-halving, Hayes believes the price action before and after the event could be negative.
Coinbase has echoed similar sentiments, warning of a likely challenge in an upward momentum due to traders awaiting a price surge ahead of the Bitcoin halving, especially considering the time of year.
However, industry figures like Ripple CEO Brad Garlinghouse maintain an optimistic outlook. Garlinghouse predicts that the total market cap of crypto assets will double this year, mainly due to spot Bitcoin ETFs and the upcoming halving.
Meanwhile, Bitcoin is currently trading at $62,800, down 5.5% in the last 24 hours and 11.1% over the previous week, according to CoinGecko data. The rest of the crypto market has followed this sentiment, with the global crypto market cap dropping 6% in the last day to $2.4 trillion.