2023-10-09 15:07:29
Changpeng Zhao (CZ), the CEO of leading cryptocurrency exchange Binance, is convinced that following the Bitcoin halving in 2024, the exchange rate will rally to all-time highs. The halving that occurs every four years is a key event in the history of Bitcoin, since in addition to lowering the reward for miners, it continuously reduces the rate of coin issuance. CZ recently hinted that this supply shock has always had a significant effect on the price of bitcoin. It resulted in historical highs in 2013, 2017 and 2021. According to him, the exchange rate following the halving has an effect on the rise: The excitement before the halving: Before the Bitcoin halving, the cryptocurrency usually makes headlines, which increases the excitement and expectations before the event. The reality following the halving: Contrary to some expectations, the value of bitcoin will not multiply immediately following the halving. Instead, the BTC price starts to consolidate. The price explosion: So far, in the year (or years) following the Bitcoin halving, the price of the cryptocurrency has risen to new all-time highs. This phenomenon has been influenced by a combination of factors, including increasing acceptance and decreasing emissions. According to CZ, this all contributes to BTC becoming predictable, which is also due to the fact that its monetary policy is not determined by governments. And the event is a reminder of the deflationary nature of digital currency, which distinguishes cryptocurrency from traditional fiat currencies. Despite the positive attitude of the Binance CEO, there is still no clear evidence of how the Bitcoin halving will affect the exchange rate. Several external factors play a significant role in the market reaction and the behavior of investors. In any case, it’s worth taking a look at the lessons and learnings to properly prepare for next year’s half-term.
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