According to Mark Nuvelstijn, the CEO of Bitvavo, the looming Bitcoin mining reward halving in 2024 may not necessarily trigger a supply shock in the market due to the dynamics of supply and demand.
Nuvelstijn, who co-founded the Netherlands-based cryptocurrency exchange, shared his insights on the state of the Bitcoin market during the European Blockchain Convention in Barcelona.
Nuvelstijn’s perspective is grounded in the idea that as demand for Bitcoin grows, so does its price. He noted that this price increase will continue until it reaches equilibrium with demand.
Consequently, he is optimistic that exchanges like Bitvavo will be able to meet the demands of traders, as they act as intermediaries matching buy and sell orders.
In discussing Bitcoin exchange-traded fund (ETF) applications filed in the United States, Nuvelstijn highlighted the increasing attention and interest in the cryptocurrency market.
He pointed out that the recent substantial surge in the Bitcoin price, up by 20% to 30% over two weeks, is indicative of this growing interest. Bitvavo has also witnessed a surge in web traffic, customer visits, and app usage, resulting in an influx of new customers.
Nevertheless, the CEO emphasized that this is still a pre-event, as the ETF approvals have not materialized yet.
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Bitvavo, primarily focused on the Netherlands and Belgium, has plans for expansion into other European jurisdictions such as France, Spain, and Italy.
Nuvelstijn anticipates that the European Union’s Markets in Crypto-Assets (MiCA) regulation will play a pivotal role in advancing market maturity and facilitating cross-border business operations.
MiCA is expected to harmonize regulations across European countries, simplifying the licensing process and promoting a more conducive environment for crypto and financial services.
Additionally, Nuvelstijn sees MiCA as a catalyst for greater integration between traditional financial services and cryptocurrency companies, predicting a blending of business models in the financial sector.
Furthermore, a report from a Standard Chartered analyst in July 2023 suggests that the rising institutional demand for Bitcoin may drive its price to approximately $120,000 by the end of the year.
This increase is attributed to enhanced mining profitability, reducing the necessity to sell newly mined coins.
As Bitcoin’s ecosystem continues to evolve, the industry remains dynamic, with market participants like Bitvavo adapting to meet the evolving demands of the crypto market.
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