Perception A: Institutional investors expect Bitcoin halving to boost investment and price

February 14, 2024

New global research by London-based Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning, regulated digital assets hedge fund manager, shows institutional investors and wealth managers are increasingly positive on the impact of the next Bitcoin halving.

The next Bitcoin halving – expected in April when the number of blocks reaches 840,000 – is aimed at maintaining the currency’s scarcity and value by cutting the number of new Bitcoins issued and will be the fourth in its history.

Nickel’s study with institutional investors and wealth managers in the US, UK, Germany, Switzerland, Singapore, Brazil and the United Arab Emirates who collectively manage around $ 815.5 billion in assets found 81% expect the halving to be positive for Bitcoin’s price. Around 25% believe it will be very positive.

Around seven out of 10 (69%) questioned believe the halving will increase investment levels in Bitcoin with 18% expecting a dramatic increase.  Just 2% believe the halving will reduce investment in the currency.

Nickel’s study also looked at wider knowledge among institutional investors and wealth managers on the technicalities of cryptocurrencies asking how many were aware that Ethereum’s upgrade – known as The Merge – last year means the asset is now deflationary by roughly 1% with more being removed from supply than created. Around 78% questioned said they were aware with 16% admitting they were not and 6% not expressing a view.