Binance, the world’s largest cryptocurrency exchange by trading volume, has added a Bitcoin halving countdown to its homepage. This was made known in an announcement in which Binance CEO, Changpeng Zhao (CZ), shared a bullish Bitcoin prediction tied to the upcoming halving event.
Bitcoin halving is a programmed event that occurs approximately every four years. During a halving, rewards for validating transactions on the Bitcoin network are reduced by half. This event is significant because it directly impacts the rate of mining new Bitcoins, making Bitcoin increasingly scarce and more valuable.
The announcement has since sparked considerable interest from the community, with many wondering what might happen after the halving. While cautious about making predictions, CZ has shared some insightful observations based on past halving events.
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CZ’s observations about Bitcoin halvings are based on his experience from the past three halving events:
In the months leading up to a Bitcoin halving, there is typically a surge in excitement, news coverage, and discussions within the cryptocurrency community. This period is characterized by heightened anticipation, anxiety, and expectations about the event’s impact on Bitcoin’s price.
Contrary to some over-optimistic expectations, the day immediately following the halving does not typically witness a doubling of Bitcoin’s price. CZ states that the price does not double overnight and adds, “People will be asking why it didn’t.”
CZ’s most notable observation is that in the year following a Bitcoin halving, the cryptocurrency often experiences multiple all-time highs. This phenomenon has played out many times before, and the third Bitcoin halving sent it to $69,000 from $9,000 in 18 months. CZ also highlights that this phenomenon puzzles investors because people have short memories.
Read Also: What is Bitcoin Halving? Here’s All You Have to Know
Notably, CZ does not claim the existence of proven causation between Bitcoin halvings and the rise in BTC price. He emphasizes that history does not predict the future of cryptocurrencies. However, the patterns observed in the past can provide valuable insights for those seeking to understand Bitcoin’s potential future after the halving.
A crypto analyst recently predicted an astonishing 24,428% surge for XRP, with Bitcoin halving as one of the main factors driving it. The halving could cause the bull run the crypto market is waiting for, and as we approach it, it will be interesting to see whether history repeats itself or if new factors come into play.
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HO CHI MINH, Vietnam, 17th November 2024, Chainwire