CFOtech New Zealand - Technology news for CFOs & financial decision-makers
Story image
Bitcoin peaks at record high against NZD ahead of halving event
Fri, 1st Mar 2024

Bitcoin has set a historic milestone against the New Zealand dollar (NZD) by hitting $104,606NZD overnight. This is an all-time high, surpassing its November 2021 peak of $91,365. Against the US dollar (USD), Bitcoin is teetering close to a new historic all-time high of $70,000 USD which aligns with $113,268 NZD.

These numbers coincide with the growing interest in cryptocurrency as financial institutions such as BlackRock, Invesco, and Fidelity are among 11 spot Bitcoin Exchange-Traded Funds (ETFs) issuers that entered the market in January 2024. Binance Australia and New Zealand General Manager, Ben Rose, appreciates the remarkable increase of crypto investment among newcomers. "We've always had an unwavering belief in the potential of cryptocurrency and it's exciting to see more and more people becoming aware of that potential," he said.

Following this Bitcoin price surge, a significant number of Bitcoin ETFs have set daily volume records as they become more accessible to both new retail and institutional investors keen on Bitcoin trading without owning the asset directly. "With the introduction of spot Bitcoin ETFs, investing in Bitcoin is now more accessible than ever for first-time investors and we've seen an influx of new investors dipping their toes into crypto for the first time," Rose explained.

As Bitcoin's legitimacy as an investment option through ETF listings gains recognition, wider interest is burgeoning towards the cryptomarket as a whole. These milestones have amplified in light of the anticipated Bitcoin halving event, expected to occur in April. This event, coded to happen every 210,000 blocks or approximately every four years, halves miner rewards and ensures a supply cap of Bitcoin at 21 million.

Historically, Bitcoin has traded in four-year cycles, and events like the halving help anticipate market movements. "Previous halvings have preceded a corresponding bull run to all-time highs however the impact on price is, of course, hotly debated and anticipated by market participants," said Rose.

The halving event this year marks the first time significant funds from institutions and traditional markets will be involved, thanks to Bitcoin ETFs. In highlighting the importance of events like the halving, Rose affirmed these serve as a stark reminder of Bitcoin's fundamental strengths differentiating it from traditional fiat currencies.

"Reaching an all-time NZD high, even before the halving, speaks volumes to the growing acceptance and optimism towards crypto. While ETFs helped to break down entry barriers into crypto investing, more and more people are understanding the attractive characteristics of Bitcoin. Unlike traditional fiat currencies which are inflationary and constantly expanding in supply, Bitcoin's algorithmically determined supply and its pre-coded halving event create a scarce and desirable asset that is free from inflationary debasement from a central party," Rose commented.

As global debt escalates at record levels, investors are seeking certainty in these volatile times, with Bitcoin and its set-in-stone halving event providing assurance that its scarcity will persist. With the crypto industry continuing to attract new investors annually, Rose remains hopeful on the sector's trajectory, reflecting, "It's no surprise to see Bitcoin surging in a year when entry barriers to investing have never been lower. Investing and trading in crypto is no longer restricted to tech-savvy individuals."