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CZ: “Halving is not the only factor affecting BTC”

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Binance CEO Changpeng Zhao states that Halving is not the only factor influencing the price of Bitcoin (BTC) and that “the past does not predict the future

In the world of cryptocurrencies there is a topic that occupies almost the entire agenda: the Bitcoin Halving of May. Those who trust Bitcoin foreshadow that the trend of the previous two will repeat and the price will rise until #moon.

Halving is not the only factor that can impact price

In a recent interview. Changpeng Zhao, the CEO of the world’s largest crypto exchange, stated that the price of Bitcoin will experience an upward movement higher than the current one and that Halving is not the only factor that can impact the price of the world’s first cryptocurrency.

While he admitted that historical events do not necessarily predict future events. He noted that miners will have to spend almost twice as much to mine a single BTC. That would trigger a price increase in the medium and long term.

According to him, although the event is important. Halving is not the only factor that can impact Bitcoin’s price:

“There are many other things that influence the price of Bitcoin and, furthermore, assessing the impact of Halving only by analyzing the charts of the past is not enough to determine its appreciation or decline.”

Also added:

“If you consider history, the markets have been inefficient in recent times, and this year we have a different scenario with the Coronavirus pandemic. A lot of people in the cryptocurrency market probably don’t understand what Halving is. ”.

What is Halving?

It is a provisioning functionality preprogrammed in the Bitcoin protocol. Thus it reduces the block reward for miners, those who “approve and validate” transactions, by exactly 50%. 12.5 BTC reward, immediately after the event it will be 6.25 BTC per block.

An important aspect of Halving is that it is predictable, almost up to the exact minute in which it will take place. This results in an overstatement of the bull market around the event.

While Zhao is filled with confidence for the next Halving, the world of cryptocurrencies continues to be aware of what may happen in the market.

Some extra opinions

History shows facts, but Bitcoin’s volatility can change forecasts and say something else in a matter of hours.

Mike Novogratz. Founder of Galaxy Digital, expressed that for him it is quite likely that Bitcoin will exceed the reference of $ 20,000.

On the other hand, Jesse Powell. Kraken CEO stated “When I hear people talk about a Bitcoin ‘correction’, I think of $ 100,000, maybe a million. That’s right

Adam Back. Blockstream CEO: ”As the effects of Halving and the fundamentals of technology make themselves felt, the price may go as high as $ 100,000.

Tone Vays, for example, argued that Bitcoin would not drop below $ 5,000 before Halving. For his part, Charles Hwang stated that:Unless otherwise stated. Se assumes all Bitcoin amounts would be priced at $ 10,000 per BTC

Jason Williams, co-founder of the Digital Asset Fund, Morgan Creek Digital, noted that the event will do nothing for the price of Bitcoin.

However, CZ has a positive outlook on Halving. Due to the supply-demand relationship, which indicates that there is an increasing demand for Bitcoin and, at the other extreme, Halving will reduce the amount of Bitcoin in circulation, along with another series of factors, as it repeats to us that Halving is not the only factor that can impact the price of Bitcoin.

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