Binance, one of the world’s leading crypto exchanges, has started a countdown timer before the upcoming Bitcoin halving. Binance CEO Changpeng Zhao (CZ) also participated in the event and shared his predictions about the expectations from past halvings.
Potential Effects of Halving
Bitcoin halvings in the past have often led to price increases. However, CZ warned that the sudden price increases expected after almost every halving usually do not occur. While expectations are high after the halving, historically, Bitcoin generally sees its highest prices in the year following the halving.
CZ noted that people often overlook the direct relationship between halving events and large price increases. ‘The expected price boom after the halving may not occur immediately, but in the long run, this event has been observed to have a positive impact on the value of the cryptocurrency.’
”I can’t predict the future. This is my experience based on the past 3 halvings.
1. The few months leading up to the bitcoin halving (from now), there will be more and more chatter, news, anxiety, expectations, hype, hope, etc.
2. The day after the halving, the bitcoin price won’t double overnight. And people will be asking why it didn’t.
3. The year after the halving, bitcoin price hits multiple ATH (all time highs). And people ask why. People have short memories.”Changpeng Zhao.
The Bitcoin halving is expected to have a positive impact on the cryptocurrency market. However, as CZ stated, investors should not be caught up in expectations of sudden and unexpected price increases and should be careful in this process.