Ahmet Onur Yeygün
Halving Could Boost Bullish Trend in Markets. The much-anticipated Bitcoin halving took place on the evening of April 19, after a four-year wait. Bitci Exchange CEO Ahmet Onur Yeygün suggests that the peaks seen with ETFs could be renewed alongside the effects of Bitcoin halving, providing insights into the potential impacts on the cryptocurrency markets.
With the approval of spot Bitcoin ETFs by the SEC, the cryptocurrency ecosystem has been focused on Bitcoin halving. Following four years of anticipation, the halving was completed on April 19. Introduced to the market in 2009 with a mining reward of 50 BTC, the leading cryptocurrency’s block reward decreased to 25 BTC in 2012, 12.5 BTC in 2016, and finally 6.25 BTC in 2020. Since the halving on April 19, this amount has been reduced to 3.125 BTC.
However, there is curiosity about how halving will affect cryptocurrencies in the markets. Ahmet Onur Yeygün, CEO of Bitci Exchange, suggests that halving could accelerate the bullish trend in the markets and shares his expectations for the upcoming period.
“The Bitcoin Halving, which occurs every four years, was completed recently. This process, which means halving, halved the income from Bitcoin mining.
While this halving process initially seems like a development that concerns miners, we can actually consider it as a factor that affects the entire market. Because the reduction in miner income will also reduce the production of Bitcoin, which is already limited to 21 million. The fact that the circulating supply will not increase is also a positive sign for the Bitcoin price.
“Scenario in this halving worked differently compared to previous ones”
Looking back at past halvings, we see similar market movements. Markets initially experience a pullback before entering a significant uptrend. Of course, there is no written rule that the same scenario will occur in every halving. When we look at it, this halving process developed a bit differently compared to previous ones. We saw Bitcoin renewing its historic peak just before halving, following the approval of spot Bitcoin ETFs by the SEC. After the markets maintained an uptrend for a while, rising tensions in the Middle East caused a significant pullback in the markets. Therefore, the scenario in this halving worked differently compared to previous ones.
Looking at this situation may have raised question marks for investors. However, I do not think there is a situation that will lead to pessimism. Because there is no change in the system and mentality of halving. Therefore, we can say that the effects of halving will be similar to those of previous ones.
Moreover, from a global macroeconomic perspective, there is no negative outlook for the cryptocurrency markets. Pressure on the Fed for interest rate cuts has increased in order to balance inflation and employment data in the United States. Expectations are shaping up for expansionary policies to be implemented within this year.
In summary, we can comfortably say that the overall picture is positive for the sector. The peaks seen with ETFs could be renewed with the impact of monetary expansion and Bitcoin halving. Especially in the short term, halving could boost the bullish trend in the markets.”