The leader in crypto fund management, Bitwise, has expressed optimism about the upcoming halving event for Bitcoin (BTC), stating that it could serve as a catalyst for a bullish rally. Bitwise’s Chief Investment Officer, Matt Hougan, recently shared his thoughts on the matter during an interview with CNBC Squawk Box’s Andrew Sorkin. According to Hougan, the halving event, scheduled for April 19th, has the potential to trigger a significant surge in Bitcoin’s price, drawing on historical patterns.

However, he cautioned that the positive effects of the halving might not be immediately felt, but rather in the long term. Hougan explained, “If you look historically at halvings, the price action around the halving if you look at a week or two weeks is relatively muted, but if you look out a year, the Bitcoin price has rallied substantially after each of the past three halvings and I think it will do so again. I think you can overthink this.”

Hougan further emphasized the positive impact of the halving event on Bitcoin’s price by highlighting the reduction in new supply entering the market. With the halving, the annual supply of Bitcoin will be cut in half, removing approximately $11 billion of supply. Hougan believes that this reduction in supply will ultimately drive up the price, stating, “I think big picture that has to be good for price and that’s what I would expect over the next year.”

In addition to the halving event, Hougan also sees potential for increased liquidity in Bitcoin due to the introduction of spot Bitcoin exchange-traded funds (ETFs). He believes that these ETFs will attract more professional investors to the market, making it easier for institutions like endowments, advisors, and family offices to invest in Bitcoin. Hougan sees the convergence of the demand shock from the launch of ETFs and the supply shock from the halving event as an exciting opportunity for Bitcoin’s future performance.

At the time of writing, Bitcoin is trading at $63,862, showing a slight increase in the past 24 hours. As the halving event approaches and ETFs gain traction, the market for Bitcoin is expected to experience significant developments.

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