- Crypto.com CEO Kris Marszalek warns of a potential short-term dip in Bitcoin prices as the Bitcoin halving approaches.
- This is attributed to the “buy the rumor, sell the news” strategy, which is typical in such market events.
Kris Marszalek, CEO of crypto trading platform Crypto.com, shared his outlook on the impact of the upcoming Bitcoin halving and the introduction of spot Bitcoin exchange-traded funds (ETFs) on the cryptocurrency’s price.
Marszalek anticipates a period of consolidation similar to previous cycles. He expects notable market activity in the six months following the Bitcoin halving. As for the effect of the halving on the supply of Bitcoin, Marszalek emphasized that reducing the amount of Bitcoin sold by miners could substantially influence the market over a six-month period, though not immediately.
He warned of potential selling leading up to the halving, citing the “buy the rumor, sell the news” strategy, a phenomenon where investors anticipate news and make moves accordingly.
Discussing the impact of spot Bitcoin ETFs on the market, Marszalek believes that the introduction of these financial instruments changes the market structure significantly by bringing in new flows of capital previously absent from the market. He also noted that the shift would change the proportion of price influence from retail investors versus institutional investors.
In terms of future market developments, Marszalek suggested that decisions on other types of crypto ETFs or cryptocurrency basket ETFs could strengthen market flows. He highlighted the recent approval of spot Bitcoin and Ether ETFs in Hong Kong as a noteworthy development.
When asked about his expectations for Bitcoin’s price movement, Marszalek emphasized the importance of a long-term investment perspective for Bitcoin, suggesting it should be measured in years or even decades. He reiterated his confidence in Bitcoin’s performance over the next six months, expressing optimism for potential gains.
Overall, Marszalek’s perspective points to a temporary dip in Bitcoin prices ahead of the halving, but he foresees promising performance for the cryptocurrency within the months following the event.
Looking Ahead: Long-Term Potential
While a temporary dip in Bitcoin prices is expected in the lead-up to the halving, Crypto.com CEO Kris Marszalek remains optimistic about the cryptocurrency’s performance in the following months. Investors are encouraged to adopt a long-term perspective, as Bitcoin’s potential for gains over the next six months and beyond appears promising.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
