Provide and demand dynamics may mitigate considerations of a possible Bitcoin market provide shock in the course of the upcoming mining reward halving in 2024, based on Bitvavo CEO Mark Nuvelstijn.
The co-founder of the Netherlands-based cryptocurrency change weighed in on Bitcoin-related market actions in dialog with Cointelegraph in the course of the European Blockchain Conference held in Barcelona.
Nuvelstijn expressed his perception that exchanges would doubtless have enough Bitcoin provide to satisfy the demand from customers:
“If there’s extra demand the worth will enhance, and it’ll preserve growing till there’s a match between worth and demand.”
The Bitvavo CEO added that the potential booming demand for Bitcoin would result in growing costs till demand cools and costs stabilize. Because of this, Nuvelstijn will not be involved that exchanges like his would run out of BTC to satisfy buying and selling calls for:
“As a platform we’re agnostic to that. We’re simply matching purchase and promote orders to make trades potential. If there’s plenty of demand for Bitcoin, it’s solely an excellent factor for the sector.”
Nuvelstijn additionally weighed in on the affect of Bitcoin exchange-traded fund purposes submitted in the US over the previous yr and the potential affect their approval may have on the worth of Bitcoin:
“We’ve seen extra consideration, extra curiosity within the crypto market. You noticed how steeply the Bitcoin worth elevated over the previous two weeks. It was up 20 or 30 p.c which is an enormous soar.”
Bitvavo has seen a rise in internet site visitors in addition to clients visiting their platform and utilizing their app. The change has onboarded new clients as effectively, whereas Nuvelstijn added that these numbers have been nonetheless in need of the degrees it noticed in 2021:
“As you talked about, the ETFs are usually not but accepted, proper? So that is to illustrate a pre-event. The occasion itself nonetheless must occur.”
Nuvelstijn additionally defined that whereas Bitvavo’s core markets stay the Netherland and Belgium, it’s eyeing regular growth into jurisdictions together with France, Spain and Italy. He additionally believes that the European Union’s Markets in Crypto-Belongings (MiCA) will drive market maturity and ease of doing enterprise:
“It would open up the European market so that you now not want a license per nation. The regulation will develop into extra harmonized, that means you may simply do cross-border enterprise.”
Nuvelstijn additionally sees MiCA laying the inspiration for cryptocurrency firms to supply extra monetary companies, drawing comparisons to traditional monetary laws:
“It will likely be simpler for crypto firms to supply monetary companies and for monetary companies to supply crypto companies. I believe you will note these sorts of enterprise fashions being extra commingled.”
A report from a Normal Chartered analyst in July 2023 means that rising institutional demand for Bitcoin may drive the worth of BTC to round $120,000 by the top of the yr, pushed by elevated mining profitability which can ease the necessity to promote mined cash.