Binance CEO Foresees Monumental Bitcoin Price Shift Following Halving
October 09 2023 - 3:00AM
NEWSBTC
As the crypto community’s anticipation heightens for the upcoming
Bitcoin halving, Changpeng Zhao (CZ), CEO of Binance, recently
elucidated his observations around the historical patterns tied to
this quadrennial event. Highlighting the evolving sentiments and
speculations, CZ spotlighted the dominant themes before and after
the halving events. CZ observed that the preceding months to the
halving are generally characterized by heightened discourse,
diverse sentiments, and amplified expectations within the
cryptocurrency sphere. “The few months leading up to the Bitcoin
halving, there will be more and more chatter, news, anxiety,
expectations, hype, hope, etc.,” he stated. Addressing the commonly
held belief that Bitcoin’s price will witness an immediate uptick
post-halving, CZ dispelled such notions based on historical
patterns. “The day after the halving, the Bitcoin price won’t
double overnight. And people will be asking why it didn’t,” he
remarked, addressing the immediate aftermath expectations. Related
Reading: Bitcoin Price At Risk? Whale Transfers $137 Million In BTC
After 3-Year Dormancy While the short-term reactions post-halving
may be tempered, CZ shed light on a longer-term trend where Bitcoin
often reaches new all-time highs (ATHs) within the year that
follows. In reference to the market’s ability to quickly transition
from skepticism to marvel, he quipped, “People have short
memories.” However, CZ urged caution, emphasizing that historical
patterns should not be construed as definitive indicators for
future behaviors, noting, “Not saying there is proven causation.
And history does NOT predict the future.” A More In-Depth Analysis
Of Bitcoin Halving As Bitcoinist reported, renowned crypto analyst
Rekt Capital recently published an in-depth analysis of the Bitcoin
halving, offering a more granular view of the potential phases
surrounding the event which is only 197 days and a few hours away
according to Binance’s estimates. Related Reading: Arthur Hayes
Predicts Bitcoin Price To Hit $750,000, Here’s When Reflecting on
historical patterns, the analyst suggested a possible deeper
retrace for Bitcoin in the 140 days leading up to the halving.
Drawing historical parallels, Rekt Capital emphasized, “You can
debate whether 2023 is more like 2015 or more like 2019… Doesn’t
change the fact that BTC retraced -24% in 2015 and -38% in 2019 at
this same point in the cycle (i.e. ~200 days before the halving).”
Anticipating market dynamics as the halving nears, Rekt Capital
postulated that roughly 60 days before the event, historically a
pre-halving rally will likely emerge. This phase, marked by
investor enthusiasm and elevated expectations as CZ puts it, is
often characterized by buying into the halving anticipation. But
this enthusiastic phase doesn’t last. Around the halving event, the
market often shows pullback behavior under the motto “buy the
rumor, sell the news”. Highlighting this trend, the analyst cited
the -38% dip witnessed in 2016 and the -20% decline in 2020,
moments when the market re-evaluated the halving’s short-term
implications. Subsequent to this, Rekt Capital predicts a
multi-month re-accumulation phase, often marked by investor fatigue
due to stagnation. However, breaking out of this phase typically
heralds Bitcoin’s entry into a parabolic uptrend, potentially
culminating in new all-time highs. At press time, BTC traded at
$27,904. Featured image from Moneyweek, chart from TradingView.com
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