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

According to research from Binance, the world’s largest cryptocurrency platform, investment sentiment is expected to improve, valuations will be higher, and trading volumes will increase ahead of the upcoming global Bitcoin halving.

The study, which surveyed more than 2,000 Australian cryptocurrency investors, revealed that more than 80% of respondents believe the upcoming halving will be positive 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 were positive feedback for the market.

“It is pleasing to see that our Australian customers are very knowledgeable about the halving, with 85% considering themselves well-informed. The results 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.”

“As we deal with inflationary pressures and rising interest rates, the halving is an important built-in inflation hedge. With only 21 million coins ever created, the asset mimics the scarcity of precious commodities like 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 ideally timed to get more Australians educated on and involved in the cryptocurrency market,” Rose said.

Unprecedented investor demand

This year’s halving event is a unique milestone as leading global institutional investment firms including BlackRock and Fidelity have 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,” Rose said. “The launch of ETFs and increased institutional participation have increased interest among mainstream investors and have had a positive impact on demand for cryptocurrencies.”

“As Australian investors – from retail to institutions – increasingly turn their attention to cryptocurrencies, it becomes increasingly important that Australia urgently introduces a formal regulatory framework that protects consumers and promotes innovation. We need to remain competitive on the global stage.”

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