For Changpeng Zhao, CEO of Binance, Halving is not the only factor that can affect Bitcoin’s price. According to him, although the event is important There are many other factors that affect Bitcoin’s price. In addition, simply evaluating the effects of halving by analyzing past charts alone is not enough to determine Bitcoin’s appreciation or decline.
“Looking at history, markets have been inefficient lately, and this year we have a different pandemic scenario. Many people in the cryptocurrency market are unlikely to understand what halving is, and many factors can cause price variations Bitcoin, like the pandemic itself or even other aspects like a new financial crisis, violations, quantitative easing, exchange rate restrictions, high transaction costs between countries, economic sanctions and of course more and more cases of Bitcoin “he emphasized.
With regard to forecasts based on halving charts at other times, CZ highlights the following: “History cannot predict the future“so”Correlation does not prove causality“It is therefore not possible to clearly predict whether there will be a drop in price at BTC shortly after halving or a ‘rally’ that will bring Bitcoin to new highs over the course of the year.
However, CZ has a positive outlook of halving due to the relationship between supply and demand, which indicates this There is growing demand for Bitcoin, and at the other extreme, halving it will reduce the amount of Bitcoin in circulation.
“I think we should see similar expectations. The rate of new Bitcoin deliveries reaching the market is falling and demand continues to increase,” he said.
Cointelegraph asked CZ about their expectations regarding the BTC price before and after halving. However, the CEO stated that he does not make price predictions.
While CZ avoids stating how much Bitcoin will be worth by the end of the year, Bitcoin is currently getting a significant positive note that exceeds $ 7,780.
“”As long as the price of BTC in dollars stays above $ 7,600, it’s fine. A stay above $ 7,600 will add momentum and possibly a break above the resistance, “said cautious Cointelegraph analyst Michaël van de Poppe on Twitter.