Three Arrows Capital chief executive officer Su Zhu says traders are downplaying the impact of bitcoin’s halving event.
Speaking in a live interview with The Block, the crypto hedge fund CEO explained that May’s halving event is no longer priced into bitcoin following the dip below $7,000. Zhu said he expects next month’s block reward reduction to create a supply shock for traders and drive buying pressure for bitcoin.
I think at this point it’s not priced in. I think it was arguably priced in a few months ago from the point of view of the leverage, but then the spot buying not coming in. I think once the halving comes through and people see there’s less supply coming on the market, there’s going to be quite a big supply shock.
I think ultimately people will be surprised by how little supply there can be if we go into a run, and then new money comes buying in as well.
Zhu dispelled the rumor that bitcoin miners will be in a crunch post-halving, saying that large mining groups have plenty of spare collateral. He also revealed his hedge fund has experienced a renewed interest in ethereum from high-net-worth individuals.
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