(MENAFN- Perceptiona) The last Bitcoin halving contributed to growth in the cryptocurrency of 460% after 300 days highlighting the potential for a further surge in the digital assets market, analysis by London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning, regulated digital assets hedge fund manager founded by alumni of Bankers Trust, Goldman Sachs and JPMorgan, shows.
Data shows that 100 days after the May 2020 halving Bitcoin was up 36% and then 460% higher after 300 days. In the 2016 halving it fell by 2.7% after 100 days and was 133% up after 300 days while in the first halving in 2012 it gained 240% after 100 days and 896% after 300 days.
Nickel’s survey(2) of institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $816 billion in assets found 69% surveyed believe this year’s halving will increase institutional investment in Bitcoin with 18% expecting a dramatic increase. Just 2% believe the halving will reduce investment in the currency.
The study found altcoins will benefit from the event too – even before the halving 83% of investors said the strength of Bitcoin and Ethereum is driving interest in other currencies and Nickel believes that will be intensified after the halving.
Institutional investment in the sector will also drive more digital asset fund launches with nearly two out of three (63%) of those surveyed predicting a rise in new funds being launched as competition for investors increases.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, said: “The transparent and programmable reduction in the inflation rate, driven by deterministic code, leads to a greater scarcity of the underlying asset, and thus natural price appreciation in a search of new demand/supply equilibrium.
“Notably, after the halving of April 2024, the new annual issuance rate of bitcoin (0.83%) for the first time will become sustainably lower than gold (1.7%). Furthermore, in contrast with gold, bitcoin issuance cannot be ramped up in response to increasing demand. Consequently, the halving provides a global stage for Bitcoin to highlight its hard asset characteristics.
The key point about progressive reduction of supply is that it is governed by an algorithmic protocol, starkly contrasting with the habitual expansion of money supply by central banks, which often leads to financial systems plagued by inflationary pressures.”
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