With the next Bitcoin halving inching closer, several members of the crypto industry anticipate a bullish season for the leading cryptocurrency.
Changpeng Zhao (CZ), the CEO and co-founder of crypto exchange Binance, is the latest to weigh in his view on the impact of the incoming Bitcoin halving on BTC’s price. His comments reveal that Bitcoin’s value will increase a year after halving occurs.
CZ Predicts Multiple ATH for BTC
Bitcoin halving is an event where the reward for bitcoin mining is cut in half. It entails that the halving reduces the number of new BTCs created, thereby reducing the inflation rate and potentially increasing its value. The event occurs every four years.
CZ shares the same optimism with several crypto enthusiasts that Bitcoin’s price will see a significant rise post-halving. In anticipation of the fourth Bitcoin halving event, the Binance boss revealed that a halving countdown to April 2024 has been added to Binance’s homepage.
Despite the enthusiasm, CZ’s comments take a slightly different turn from what most crypto users are anticipating. Citing the past three halving events that have occurred in Bitcoin’s history, the Binance CEO argued that the price jump won’t occur “overnight” but will take up to a year.
“The day after the halving, the bitcoin price won’t double overnight. And people will be asking why it didn’t. [. . .] The year after the halving, bitcoin price hits multiple ATH (all time highs). And people ask why,” he wrote.
Still, he echoed that this prediction is not a “proven causation” and that “history does NOT predict the future.”
Halving’s Impact on BTC
Following its adoption in 2009, the Bitcoin network experienced three halving events which occurred in November 2012, July 2016, and May 2020. The next halving, which will see the BTC mining reward drop from 6.25 BTC to 3.125 BTC, will occur in April 2024.
History shows that a halving event is often accompanied by a surge in Bitcoin’s value. In the most recent halving, BTC traded around $9,000 in early May 2020. Less than a year later, the asset began seeing new all-time highs. In November 2021, the leading cryptocurrency attained a peak value of over $68,000.
Presently, BTC trades at around $27,700.
Source: CoinStats
