Changpeng Zhao, a/k/a CZ, the CEO and co-founder of the Binance exchange, recently shared insights on the upcoming Bitcoin (BTC) halving via a post on Binance Feed. Like many other crypto evangelists, CZ is optimistic that BTC halving could again trigger a new bull cycle.
Drawing from the past three Bitcoin halvings, CZ addressed a common query from crypto newcomers: “What transpires around Bitcoin halvings?” While CZ clarified that he isn’t a fortune teller, he did share his observations on how prior halvings impacted Bitcoin’s value. He noted that the buzz, anticipation, and discussions typically intensify a few months before the halving.
However, post-halving, Bitcoin’s value doesn’t skyrocket immediately, leading to questions from the community. According to CZ, Bitcoin usually starts setting new price records about a year after the halving, prompting more questions due to people’s fleeting memories. He emphasized that past halvings don’t necessarily dictate future price movements.
Bitcoin halving is a pre-scheduled event where miner rewards are reduced by 50%, making the cryptocurrency more scarce. This also means the new coins entering the market are halved. This mechanism is applicable to proof-of-work-based cryptocurrencies. The next Bitcoin halving is slated for April-May of the coming year, marking the fourth such event.
These halvings happen every four years. The last Bitcoin halving was in 2020, amidst the global pandemic. The subsequent year saw Bitcoin achieving new price peaks, with one nearing $69,000. However, many argue that this surge wasn’t solely due to the halving but was influenced by the U.S. government’s massive monetary printing in 2020, which pumped over $6 trillion into the economy, including “survival checks” and bailouts.
We will see in the coming months if Bitcoin sees another new all-time high (ATH), even with the upcoming halving. This usually comes a few months after the halving.