The CEO of Custodia Bank thinks the next Bitcoin (BTC) halving could have an even bigger impact than previous halving events.
In a new interview with Scott Melker, Caitlin Long says that she agrees with a new model put out by digital assets-focused investment firm Pantera Capital.
Long agrees that the halving should greatly impact the top crypto asset.
“This is one of the most well-telegraphed, fundamental events in finance: Bitcoin is going to go through a halving. And then what happens? If you really understand the mechanics, the miners shut off the machines that right now are wildly profitable but stop being profitable the moment the halving occurs. That isn’t something anyone trades ahead of.
Maybe because there’s a more developed futures market now than there was in the last halving, maybe the miners have hedged it. But I kind of doubt it, because the miners have gone through an incredible shakeout.”
Long also notes that Bitcoin’s hash rate continues to grow, which is a deviation from past BTC market cycles.
“I think in some ways the halving may have an even bigger impact, because all those machines that [miners] were so desperate to plug in in the last six months, some of those are outdated and they will get shut off.”
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