Changpeng Zhao, chief executive and cofounder of Binance exchange, has published a post on the new Binance Feed platform (part of Binance, not a separate website) and then shared a link to it on the X app.
In the post, CZ talked about the upcoming Bitcoin halving, which is approximately six months away from now. CZ shared his experience based on the previous three Bitcoin halvings.
"Bitcoin price hits multiple ATHs," "people have short memory"
In his post, CZ pondered the question often asked by new members of the crypto community: "What happens around Bitcoin halvings?"
CZ admitted that he cannot predict the future, so he was just sharing his observations on how the previous three halvings influenced Bitcoin and its price. Changpeng stated that usually a few months before the event, the amount of pre-halving discussions, anxiety, expectations and hype is bound to increase. Once halving takes place, the BTC jump remains unaffected, at least it "will not double overnight" and people will begin asking why, CZ wrote ironically.
Per what CZ wrote, the Bitcoin price will begin hitting various all-time highs no earlier than a year after the halving event, and "people ask why. People have short memories," CZ added.
He also stressed that there is no any proven causation driven by halvings to the BTC price, and "history does not predict the future."
Bitcoin halving 2024
Bitcoin halving (also known as halvening) is a programmed point when rewards received by miners are cut by half, in order to make a coin more deflationary. This also means that the number of coins injected into the market gets sliced by half too. It works for proof-of-work-based cryptocurrencies. For the world's flagship crypto, Bitcoin, the upcoming halving will take place in April-May next year, and it will be the fourth BTC halving in history.
Halvings occur every four years. The previous one for Bitcoin happened in 2020, when the pandemic hit the markets. The following year, first in April and then in October, Bitcoin reached new all-time highs in price. The second one took BTC close to the $69,000 level.
Still, many believe that digital gold, as many people also call Bitcoin, reached the new ATH in 2021 not so much because of the halving but mostly due to the U.S. government printing trillions of U.S. dollars since the beginning of 2020. In that year alone, more than $6 trillion were injected into the U.S. economy in the form of "survival checks" (worth $1,200), and the money printed to bail out banks and large businesses.
This year already, Litcoin (LTC) and Dash (DASH) have seen their halvenings take place.