If we are to believe Ballet CEO Bobby Lee, the industry has now arrived in a “new spring” after surviving a hugely long winter. In a new interview with Bloomberg Television, Lee says Bitcoin is likely to continue following its four-year market cycle.
The next halving
The next Bitcoin halving is scheduled for April 2024. Then the reward for miners for producing a new block for the blockchain goes from 6.25 Bitcoin to 3.125 Bitcoin.
With the drop in that reward, Bitcoin’s inflation also drops by 50 percent. In that respect, it is not surprising that we have seen Bitcoin explode after every halving in the past.
If the demand remains the same and the new supply suddenly drops by half, there is of course a good chance that the value of an asset will increase. So far we have seen that every time for Bitcoin.
“We are finally seeing signs of a potential spring and the end of winter. It took a long time. (…) It’s nice to see Bitcoin bounce back from the bottom of $16,000 to $31,000,” said Lee.
The banking crisis
Lee says the US banking crisis has certainly helped the narrative around Bitcoin and crypto. Thanks to the problems at the banks, more people have come to see Bitcoin as a safe haven and an alternative to the traditional system.
“You have to see crypto as a safe haven in the sense that it works very differently from traditional fiat money. Because of the banking crisis, people are realizing that their money is not always there, because it is lent to companies and governments,” says Bobby Lee.
Lee also says that the sales figures at Ballet, which produces hardware wallets, have gone through the roof in recent weeks. Especially after the increase in skepticism surrounding the traditional financial system.