Supply and demand dynamics may mitigate concerns of a possible Bitcoin (BTC) market supply shock throughout the upcoming mining reward halving in 2024, in accordance with Bitvavo CEO Mark Nuvelstijn.
The co-founder of the Netherlands-based cryptocurrency alternate weighed in on Bitcoin-related market actions in dialog with Cointelegraph throughout the European Blockchain Convention held in Barcelona.
Nuvelstijn expressed his perception that exchanges would possible have ample Bitcoin supply to fulfill the demand from customers:
“If there’s more demand, the price will increase, and it will keep increasing until there’s a match between price and demand.”
The Bitvavo CEO added that the potential booming demand for Bitcoin would improve costs till demand cools and costs stabilize. As a outcome, Nuvelstijn is just not 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 are just matching buy and sell orders to make trades possible. If there’s a lot of demand for Bitcoin, it’s only a good thing for the sector.”
Nuvelstijn additionally weighed in on Bitcoin exchange-traded fund (ETF) functions filed within the United States over the previous 12 months and the potential impression their approval may have on the worth of Bitcoin:
“We’ve seen more attention, more interest in the crypto market. You saw how steeply the Bitcoin price increased over the past two weeks. It was up 20 or 30 percent, which is a massive jump.”
Bitvavo has seen a rise in internet visitors, in addition to clients visiting their platform and utilizing their app. The alternate has onboarded new clients as effectively, whereas Nuvelstijn added that these numbers have been nonetheless wanting the degrees it noticed in 2021:
“As you mentioned, the ETFs are not yet approved, right? So this is, let’s say, a pre-event. The event itself still needs to happen.”
Nuvelstijn additionally defined that whereas Bitvavo’s core markets stay the Netherlands and Belgium, it’s eyeing regular enlargement into jurisdictions together with France, Spain and Italy. He additionally believes that the European Union’s Markets in Crypto-Assets (MiCA) will drive market maturity and ease of doing enterprise:
“It will open up the European market, so you no longer need a license per country. The regulation will become more harmonized, meaning you can easily do cross-border business.”
Nuvelstijn additionally sees MiCA laying the muse for cryptocurrency firms to supply extra monetary providers, drawing comparisons to traditional monetary rules:
“It will be easier for crypto companies to offer financial services and for financial services to offer crypto services. I think you will see those kinds of business models being more commingled.”
A report from a Standard Chartered analyst in July 2023 means that rising institutional demand for Bitcoin may drive the price of BTC to around $120,000 by the tip of the 12 months, pushed by elevated mining profitability, which can ease the necessity to promote mined cash.