Is Bitcoin’s halving a catalyst for price discovery or just a narrative for novice investors? This question was recently discussed at the Swan Pacific Bitcoin festival.
During the panel, host and founder of Bitcoin Layer, Nik Bhatia, posed this question to Marathon Digital CEO Fred Thiel, Swan CIO Ralph Zagury, and Swan product manager Andy Edstrom.
The conventional notion within the crypto space is that the Bitcoin supply halving is a bullish event, often leading to a significant increase in BTC price. However, the panelists suggested that the impact of halving might be diminishing over time.
Thiel and Zagury stated that flow, not halving, is what truly drives the market. In contrast, Edstrom believes that the halving contributes to a “psychological feedback loop” in the demand side.
The role of derivatives in Bitcoin’s price discovery was also debated. According to Zagury, Bitcoin’s sideways or downwards movement most of the time “makes it really hard to hodl.”
Despite downplaying the influence of halvings on BTC price, all panelists expressed long-term bullish perspectives for Bitcoin’s value. They agreed that liquidity will be a significant future price catalyst for Bitcoin.
Edstrom suggested signs of a Federal Reserve pivot returning to quantitative easing could indicate when this crucial liquidity might return.
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