Bitcoin’s two most anticipated events of 2023—the halving and potential approval of BTC ETFs—are expected to act as crucial levers tugging on its price. But according to leading market analyst and trader Peter Brandt, the upcoming events would hardly make any dent in the dominant coins’ price, labeling it a non-event. Brandt’s remarks defy the current market sentiment, which remains upbeat over the events.
Occurring every four years, Bitcoin halving, as the name suggests, reduces miners’ rewards by half, effectively reducing the rate at which new BTC is created. The fourth Bitcoin halving is currently due to occur on April 16, 2024, when block rewards will reduce from 6.25 to 3.125 BTC per block.
Historically, Bitcoin’s halving has brought windfalls for investors. So far, there has been a BTC halving in 2012, 2016, and 2020, and each one has seen the price of Bitcoin rise in the months before and after the event.
Market participants are also looking forward to developments around the spot ETF, as major companies like BlackRock and Fidelity have lined up to launch the investment vehicle. The general belief is that such a product would significantly increase institutional investment in BTC, leading to a surge in price.
Brandt, in contrast to the majority’s stance, thinks this too will be a non-event. He also scoffed at the asset’s linkage to other markets, arguing that Bitcoin’s position at the top of the food chain is all that matters in the end.
“Bitcoin Will Be Top Of Food Chain Is Crazy Bullish”
The veteran trader’s controversial comments had mixed reactions, with some agreeing that “halving is just the beginning of the next marketing cycle, which takes time to play out.” Others disputed the ETF part, asserting that the spot ETF would instead amplify the price of BTC. Brandt’s quote about Bitcoin being at the top of the food chain was nonetheless seen positively by many.
The cryptocurrency market was largely unresponsive the day before, when Jerome Powell, the chairman of the US Federal Reserve, increased interest rates by 25 basis points [bps]. BTC remained unfazed, hovering within the $29k range, with a marginal dip in the past 24 hours.