As the much-anticipated Bitcoin Halving closes in next week, recent research by Binance, the world's largest cryptocurrency platform, has delivered forecasts that many Kiwi crypto investors are finding compelling. The research reveals expectations of improved investment sentiment, increased valuations, and boosted trading volumes, not simply among the crypto community but also gaining traction among mainstream investors. This is due in part to supportive factors such as significant institutional investment in Bitcoin ETFs and the recent record high Bitcoin pricing.

The Bitcoin Halving, an event entrenched in Bitcoin's algorithm that occurs approximately every four years, reduces the reward for Bitcoin mining by 50 percent. This halving mechanism ensures the asset's scarcity. The research conducted by Binance, involving over 550 Kiwi cryptocurrency investors, highlighted that more than three-quarters believe the impending halving will have a positive effect on the industry. Also, over half are expecting the Bitcoin price to climb as a direct consequence of the event.

Binance Australia and New Zealand General Manager, Ben Rose, interpreted the survey results as confirming a positive market sentiment. "Our New Zealand users are knowledgeable and confident investors and it's interesting to see so many Kiwis looking forward to the Bitcoin halving event," Rose said. He noted further that the research indicated the halving could likely drive New Zealand investor trading, with over 80 percent of Binance New Zealand users intending to add to their Bitcoin holdings soon, just under half of whom anticipate doing so prior to the predicted halving later this month.

Rose drew parallels with finite resources, stating, "As we grapple with inflationary pressures and rising rates, the halving is an important event to keep the asset scarce. With only 21 million coins to ever exist, the asset mimics the scarcity of precious commodities, like gold. This is capturing the attention of institutional investors, who are increasingly recognising that crypto can play as part of a diversified investment portfolio."

This year's halving is distinguished by being the first to be trailed by U.S. capital markets participation, notably with financial behemoths BlackRock and Fidelity offering clients Bitcoin access through successfully listed spot Bitcoin ETFs. Since their introduction in January, these funds have attracted a remarkable $11.9 billion in net inflows, creating a record for the most successful ETF launch ever. This move has broadened mainstream access via conventional investment channels and enhanced potential Bitcoin demand.

Fuelled by intensified investor interest, Bitcoin valuations have soared to new all-time highs, exceeding $73,000 USD per coin, the first time a record peak has closely preceded a halving. The research survey reported that 67 percent of respondents hold the bullish view that the price will continue to ascend during the next six months.

Rose stated, "There is no doubt we are at a pivotal moment for Bitcoin. The launch of ETFs and growing institutional participation has heightened interest from mainstream investors and positively impacted demand for cryptocurrency. We have not seen market conditions like this ahead of a halving event before, and this is driving a lot of excitement amongst market participants, with 75 percent of our Kiwi users eager to see the impacts."

Binance, boasting over 320,000 registered Kiwi users, witnessed a 105% surge in total trading volume comparing Q4 2023 to Q1 2024, with Bitcoin trading volume growing by 99% within the same timeframe. An increase in new user registrations was also reported, demonstrating a 25% rise over the same period.