Bitcoin (BTC) has seen a recent downturn of almost 2%, landing back below $27,000 as investors ponder the potential impact of the U.S. debt ceiling deal and last Friday’s robust employment report. Meanwhile, U.S. stock index futures remain stable on Monday morning following the previous week’s solid equity rally.
Some market watchers, such as Laurent Kssis, crypto advisor at CEC Capital, predict Bitcoin could drop below $26,000 this week. With summer on approach and no apparent catalysts, he notes that dealers are keeping inventories at bay, and any sizable sell-off may provoke additional selling pressure. It’s worth mentioning that long liquidations currently outnumber short liquidations by three-to-one.
However, retail demand for Bitcoin may stay strong over the next year, leading up to the next halving event, according to a research report by JPMorgan. Analysts led by Nikolaos Panigirtzoglo cite the advent of Bitcoin Ordinals and BRC-20 tokens as potential contributors to the increase in retail demand. More importantly, the team regards the upcoming April 2024 halving as a significant driver in bolstering investor interest. Halvings, part of Bitcoin’s original code, reduce mining rewards by 50% every 210,000 blocks or approximately four years. In the eyes of the JPMorgan team, this effectively doubles Bitcoin production costs, generating “a positive psychological effect.”
In related news, Richard Teng’s recent appointment to oversee Binance‘s regional markets outside the U.S. has positioned the former Abu Dhabi regulator as the most likely successor to founder Changpeng Zhao. This development comes on the heels of last month’s report that Zhao, widely known as CZ, plans to reduce his stake in Binance.US—an act seemingly intended to appease U.S. regulators. Teng’s regulatory experience and expertise will be invaluable as he spearheads operations in Asia, Europe, the Middle East, and North Africa while the exchange seeks to put past enforcement actions squarely behind it.
Although Teng carefully sidestepped the idea that he’s being groomed to take over from the 46-year-old CEO during a CoinDesk interview, the fact that he has joined Binance during a crucial time in its growth shouldn’t be underestimated. With his regulatory background and the exchange’s pursuit of greater legitimacy, Richard Teng may be the right person to guide Binance into a new era of transparency and increased acceptance within the ever-evolving landscape of crypto and blockchain technology.
Source: Coindesk
