The Bitcoin Halving’s Impact on ETH Price

The upcoming Bitcoin halving in April is generating a significant amount of anticipation in the crypto world. This halving will be the fourth in Bitcoin’s history, and it comes after the United States Securities and Exchange Commission (SEC) approved the first-ever spot Bitcoin exchange-traded funds (ETFs) in the U.S. This approval has greatly increased the excitement surrounding the halving event. The halving serves as a reminder of Bitcoin’s unique qualities compared to fiat currency, particularly its fixed supply schedule that no one can change.

Julian Grigo, head of institutions and fintech for Safe, believes that the halving will be even more beneficial for Ethereum than it will be for Bitcoin. Grigo explains that while Bitcoin’s supply is still growing, albeit at a slower pace, Ether’s supply is actually decreasing. This makes Ether a potentially better store of value, and Grigo expects it to benefit from the halving event more than Bitcoin.

Joey Garcia, director and head of public affairs, policy, and regulation at Xapo Bank, predicts that the halving will have a positive impact on Ethereum and the broader market. He explains that the halving, which reduces mining rewards, creates scarcity and mimics the characteristics of precious metals. This could lead to increased innovation and resources flowing into ecosystems like Ethereum.

While many believe that the halving is responsible for the positive market action, others attribute it to additional factors. Siddharth Lalwani, CEO of Range Protocol, points to Ethereum’s Dencun upgrade in March and the prospect of spot Ethereum ETF approvals by the SEC in May as catalysts for the market’s upward momentum. Lalwani predicts that Ethereum may temporarily lose out as attention shifts to Bitcoin, but He expects a bullish trend to prevail for the crypto market.

Jordi Alexander, chief alchemist at Mantle, agrees that Ethereum’s price appreciation shouldn’t solely be attributed to the halving. He highlights other industry milestones and events, such as the Ethereum Dencun upgrade and the possibility of a spot Ethereum ETF launch. Despite this, Alexander believes that both Bitcoin and Ethereum remain excellent long-term investments.

Aki Balogh, co-founder and CEO of DLC.Link, is bullish on Bitcoin due to the halving, as well as other factors like ordinals and MicroStrategy “cornering the market.” He explains that Ethereum and other tokens are highly correlated to Bitcoin, so if Bitcoin’s value increases, it will have a secondary effect of raising the values of other tokens.

The Bitcoin halving is seen as a significant event that highlights the growing importance of cryptocurrencies as an asset class. While Bitcoin receives much of the attention, Ethereum is also expected to benefit from the halving and continue to play a significant role in the crypto space.