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Bitcoin price continues its volatile trend, dropping below $66,000 again 1.5 hours before the US markets open. BlackRock’s Bitcoin reserve has exceeded $11 billion, yet sales on the GBTC side persist. However, these are triggers for short-term movements. Zach Burks is focusing on what will happen after April 20.
Bitcoin Halving and Its Consequences
Bitcoin block reward halving is expected to occur around April 20. Every 210,000 blocks, roughly every four years, miner block rewards are cut in half. Starting with 50 BTC, the rewards dropped to 6.25 in 2020 and will halve again in April. This will reduce Bitcoin’s annual inflation to around 0.8%. With a significant portion of the supply already mined, the narrative of supply scarcity is gaining strength.
However, figures like Zach Burks and Oscar Franklin Tan are focusing on the consequences of the block reward halving, especially in the context of NFTs. NFTs, which experienced a major hype at the end of 2021, were almost forgotten. Recently, volumes have been reviving.
NFTs and the Halving
Oscar Franklin Tan, the finance manager of Atlas Development, says that interest in the NFT space will increase with the upcoming halving. According to him, the cycle of spreading interest in Bitcoin to other ecosystems like NFTs will begin. In 2021, we saw an example of this as capital continuously circulated, creating a significant hype in NFTs.
“Prices and volumes will eventually increase after the halving as part of the known cycle. NFTs, being integral parts of ecosystems, will see the interest in Bitcoin spread to altcoins and NFTs as well.”
Zach Burks, the founder of Mintable, believes that an increase in NFT prices and volumes will naturally follow the rise in BTC price.
“If the halving also increases user participation, expecting a rise in NFT prices would be logical.”
He also anticipates that Bitcoin Ordinals will be directly affected by upward BTC price movements. According to him, this presents a significant opportunity for the BTC community, which has not been able to use their BTC for major participation in the Bitcoin ecosystem for years.
“This means there are many people with disposable income in Bitcoin who, until now, have had nothing to spend or use it on. As the price increases, this situation will grow exponentially, and when we surpass $70,000, every user who has bought Bitcoin until now will be in the green, meaning more capital will be in motion.”
BNB Chain developer Jimmy Zhao also shared similar views.
“As these newcomers integrate into the crypto ecosystem, we will likely see them move beyond just buying BTC on exchanges. Instead, they will become interested in NFTs, DeFi, and more.”
