Provide and demand dynamics may mitigate considerations of a possible Bitcoin market provide shock throughout the upcoming mining reward halving in 2024, in accordance with Bitvavo CEO Mark Nuvelstijn.
The co-founder of the Netherlands-based cryptocurrency trade weighed in on Bitcoin-related market actions in dialog with Cointelegraph throughout the European Blockchain Conference held in Barcelona.
Nuvelstijn expressed his perception that exchanges would doubtless have enough Bitcoin provide to fulfill the demand from customers:
“If there’s extra demand the value will improve, and it’ll hold rising till there’s a match between worth and demand.”
The Bitvavo CEO added that the potential booming demand for Bitcoin would result in rising costs till demand cools and costs stabilize. Consequently, Nuvelstijn isn’t involved that exchanges like his would run out of BTC to fulfill 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 lots of demand for Bitcoin, it’s solely a very good factor for the sector.”
Nuvelstijn additionally weighed in on the affect of Bitcoin exchange-traded fund purposes submitted in america 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 % which is a large bounce.”
Bitvavo has seen a rise in internet visitors in addition to prospects visiting their platform and utilizing their app. The trade has onboarded new prospects as effectively, whereas Nuvelstijn added that these numbers had been nonetheless in need of the degrees it noticed in 2021:
“As you talked about, the ETFs are usually not but authorised, proper? So that is for example 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-Property (MiCA) will drive market maturity and ease of doing enterprise:
“It’ll open up the European market so that you not want a license per nation. The regulation will change into extra harmonized, which means you possibly can simply do cross-border enterprise.”
Nuvelstijn additionally sees MiCA laying the muse for cryptocurrency corporations to supply extra monetary companies, drawing comparisons to standard monetary rules:
“It is going to be simpler for crypto corporations 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 Customary Chartered analyst in July 2023 means that rising institutional demand for Bitcoin may drive the value of BTC to round $120,000 by the tip of the yr, pushed by elevated mining profitability which can ease the necessity to promote mined cash.