Binance’s latest research: How do investors view the halving?

Source: Australian Blockchain&Cryptocurrency; Compiled by: Tao Zhu, Golden Finance

According to research by Binance, the world's largest cryptocurrency platform, investment sentiment is expected to improve, valuations will be higher, and trading volumes will increase before the global Bitcoin halving is about to begin.

The study, which surveyed more than 2,000 Australian cryptocurrency investors, showed that More than 80% of respondents believe the upcoming halving is good for the industry, while more than half expect the price of Bitcoin (BTC) to rise as a result.

Halving events occur approximately every four years, are built into the BTC algorithm, and reduce BTC mining rewards by 50%. They are a built-in security for the asset class that maintains token scarcity, providing a hedge against inflation. Commenting on the upbeat investor sentiment and upcoming events, Binance Australia and New Zealand General Manager Ben Rose said the survey results are a positive response to the market. “Pleasingly, our Australian customers are very knowledgeable about the halving, with 85% believing they are well-informed. The findings also show that the halving has a positive impact on BTC trading, with nearly 80% of Binance Australia users planning to increase their BTC holdings in the near future, with less than half keen to do so before the halving expected later this month.” “Halving is an important built-in inflation hedge as we deal with inflationary pressures and rising interest rates. With only 21 million coins ever created, the asset mimics the scarcity of precious commodities such as gold.” This has caught the attention of institutional investors, who are increasingly recognizing that cryptocurrencies can be part of a diversified portfolio.”

“We have an incredible opportunity in Australia to continue to grow our digital asset industry, and popular events like this are the ideal time to get more Australians educated and involved in the cryptocurrency market,” Rose said.

Unprecedented Investor Demand

This year’s halving event was a unique milestone moment, as leading global institutional investment firms including BlackRock and Fidelity launched spot BTC ETFs to cater to their clients, driving unprecedented demand for participation in the U.S. capital markets. Since spot BTC ETFs were launched in January, they have become the most successful ETFs ever.

Increased investor demand has also pushed BTC valuations to a new all-time high of over $73,000 per BTC. This is the first time BTC has peaked before a halving, and 71% of those we surveyed are bullish that prices will continue to rise over the next six months.

“There is no doubt that we are at a critical juncture for Bitcoin,” said Rose. "The launch of ETFs and increased institutional participation has increased mainstream investor interest and has had a positive impact on demand for cryptocurrencies."

"As Australian investors, from retail to institutions, increasingly turn their attention to cryptocurrencies, it is increasingly important that Australia immediately introduces a formal regulatory framework to protect consumers and promote innovation. We need to remain competitive on the global stage."

"We have never seen market conditions like this before the halving event, which has market participants very excited, with more than 70% of Australian users eager to see its impact. With extremely high demand, record-breaking prices and bullish investor prospects, it is a very exciting time to be in the cryptocurrency space," said Rose.