FX.co ★ Changpeng Zhao: Following halving, will Bitcoin glow or face a blow?

According to a forecast by Changpeng Zhao, the leader of the Binance crypto exchange, the upcoming Bitcoin halving is unlikely to impact its price.

In the businessman's view, the value of the leading crypto asset will not double immediately after the miners' reward for the mined block is reduced. Still, he envisions a scenario where, within a year, BTC will skyrocket well above its historical high of $69,000 set in November 2021.

The Bitcoin halving is expected around April 22, 2024, at a block height of 840,000. According to Nice Hash data, the miners' reward will decrease from 6.25 to 3.125 BTC at this moment.

Mr. Zhao came to the above conclusion after navigating through the digital currency's historical data and analysing previous three halvings. He added that history does not predict the future.

The head of Binance believes that investors will experience hype and some concern in the run-up to this event. Yet, the post-halving reality may not mirror the feverish expectations. The BTC value will not skyrocket instantaneously, leaving market participants wondering what actually happened. As already mentioned, the businessman forecasts a new historical high materializing only 12 months post-halving.

Earlier, analysts of Coinbase voiced a similar position. The experts doubted that the halving would have a positive impact on the BTC rate. However, experts surveyed by Bloomberg hold the opposite view and expect the first cryptocurrency to rise immediately by 81%.

Currency strategists at JPMorgan also expressed their opinion on the Bitcoin halving, calling it a 'decisive test for miners.' They believe that reduction of rewards for mining blocks and an increase in electricity costs have led to the current situation.