The Bitcoin halving event has often been viewed as a catalyst for significant price changes, and the latest halving in 2020 has sparked conversations around its potential impact on Bitcoin ETFs. Experts argue that the key difference this time is the rising institutional interest in Bitcoin, which is reflected in the launch of several Bitcoin ETFs in Canada and the growing anticipation for a U.S. Bitcoin ETF. This suggests that Bitcoin’s price moves are becoming increasingly influenced by macroeconomic factors, as opposed to purely supply and demand dynamics.
The 2020 Bitcoin halving, combined with the COVID-19 pandemic, has brought a new level of attention to Bitcoin as an asset class. Along with the rise in institutional interest, the entry of traditional financial firms into the cryptocurrency space is changing the landscape. The adoption of Bitcoin by mainstream corporations like Tesla and MicroStrategy, and the approval of Bitcoin ETFs in Canada, are seen as steps towards the legitimization of Bitcoin in the financial world. However, the U.S. has yet to approve a Bitcoin ETF, which could potentially fuel further growth in the Bitcoin market.
