Bitvavo CEO Mark Nuvelstijn believes that the supply and demand dynamics will alleviate concerns about a potential Bitcoin supply shock during the next mining reward halving in 2024. He expressed confidence that exchanges, including Bitvavo, would have enough Bitcoin supply to meet the rising demand, and the price would increase in response to demand, eventually stabilizing when supply matches it. Nuvelstijn also commented on the recent attention on the crypto market due to Bitcoin ETF applications in the United States, leading to a substantial increase in Bitcoin's price. Bitvavo has seen increased web traffic and new customers, anticipating further growth, especially with EU's Markets in Crypto-Assets (MiCA) regulation potentially making it easier to do cross-border business and offer a variety of financial services in the crypto market.
In addition to his thoughts on Bitcoin's supply and demand dynamics, Bitvavo's CEO discussed the impact of Bitcoin ETF applications in the US and the potential for market expansion into countries like France, Spain, and Italy. He believes that MiCA will drive market maturity and ease of doing business, enabling crypto companies to provide financial services and financial services to offer crypto services more easily. This regulatory shift aligns with a report from a Standard Chartered analyst in July 2023, which suggested that growing institutional demand for Bitcoin could drive its price to around $120,000 by the end of the year, partly due to increased mining profitability reducing the need to sell mined coins.