CoinShares CTO: BTC Halving Might Not Affect Bitcoin’s Price

The CoinShares CTO and one of the most prominent crypto proponents Meltem Demirors spoke about the upcoming Bitcoin halving and says that the event might not have any effect on the Bitcoin price. In our Bitcoin news now, we see what the possible outcomes of the halving process are.

Demirors believes that the halving event might not have the uplifting effect that many people believe to happen and the Bitcoin derivatives market is growing and causes more speculation rather than the actual ownership and transfer of Bitcoin coins. Bitcoin’s halving is one of the most discussed events in the crypto community and since the award will be slashed in half, the supply of freshly minted bitcoins on the market will be reduced. This causes a lot of people to think that the event will have a serious impact on Bitcoin’s price. The Coinshares CTO is not quite thrilled about the notion and she said:

 “There is a very real possibility that the price of bitcoin does not go up after halving.”

The main reason for this is the increasing influence and impact of the derivatives market as well and according to Demirors, most of the companies are looking to trade derivatives rather than the underlying asset. She also made a comparison between Bitcoin and the traditional markets and explained further that the derivatives are dominating the trading and most of the companies use paper contracts to speculate on the price of traditional assets, hence making the entire market driven by speculation.

The Bitcoin derivatives are settled in cash and they represent an option for investors to receive exposure to the price without having to own Bitcoin. They do not have to worry about safekeeping and storage. However, people can trade bitcoin without owning it and they don’t have to buy actual bitcoins which could shake the principles of supply and demand. It’s also worth noting that we have seen previously the strides in physical delivery of bitcoins as Bakkt was the first major venue to do so regularly by allowing investors to work with physically-delivered bitcoin futures. The volume on those contracts is non-existent compared to the volume of cash-settled BTC futures on exchanges such as Binance.