The cryptocurrency space is a massive industry and a fast growing one at that, with a lot of events (like the Bitcoin halving) unfolding as the day counts. Most of the time these events are seen as historically important and it affects the price of the Bitcoin market, which inturn affects the rest of the market. One of these notable events is of course, the Bitcoin halving event, which happens every 4 years and the next one expected to take place next year, around May 2024.

The importance of these events has led to many cryptocurrency analysts making predictions on what’s expected before and after the halving. Notably, Changpeng Zhao, the CEO of Binance exchange, popularly known as “CZ,” has shared his own personal thoughts on the events. This is happening as the largest cryptocurrency Exchange, Binance confirmed adding the bitcoin halving countdown to their homepage.

#Binance added the #bitcoin halving countdown to our homepage.

And here are my thoughts around the Bitcoin Halvings…https://t.co/1bmuizoeZG

— CZ 🔶 Binance (@cz_binance) October 8, 2023

What’s Bitcoin Halving?

The Bitcoin halving is a significant event in the cryptocurrency industry, particularly on the Bitcoin and Litecoin network. It is programmed to happen approximately every four years automatically. Of course, the term “halving” refers to the reduction of the rewards due to miners for verifying transactions and adding them to the Bitcoin or Litecoin blockchain, as the case may be.

Furthermore, during the next halving, the reward for bitcoin miners will be cut in half, from 6.25 BTC to 3.125 BTC, reducing the rate at which new bitcoins are created. This will ultimately limit the distribution of the cryptocurrency. 

Historical Impact Of Bitcoin Halving On Bitcoin Price

It’s no longer news that the Bitcoin halving event has always had a remarkable impact on the price of Bitcoin which translates to the rest of other cryptocurrencies. 

Historically, we have seen that these halving events have had a notable impact on Bitcoin and Litecoin prices as already mentioned. To point out a few, after the last Bitcoin halving event in May 2020, the price of Bitcoin significantly recorded a massive increase from around $8,000 to over $60,000 within a year. Also, this is the reason why many analysts believe and are making bold predictions for bitcoin, some have set their camps at $100,000 per a Bitcoin and some, way above that price range. 

CZ’s Thoughts On The Bitcoin Halving Event

Changpeng Zhao, the CEO of Binance exchange, has gone ahead to give his thoughts on the highly anticipated events in space. He began by pointing out that he can’t predict the future and what he’s going to share is from experience based on the past 3 halvings events. 

Firstly, he revealed that in the few months leading up to the halving of bitcoin, “there will be more and more chatter, news, anxiety, expectations, hype, hope, etc.” This is not a surprising stance due to the importance of the events to the market.

Secondly, he revealed that the day after the halving, “the bitcoin price won’t double overnight. And people will be asking why it didn’t.” Historically, this is confirmed to be true and people shouldn’t be filled up with high hopes that Bitcoin will immediately skyrocket overnight.

Thirdly, he further revealed that the year after the halving, “bitcoin price is expected to hit multiple ATH (all time highs).”

Lastly, He went on to state that his predictions are not absolute as history does NOT predict the future, especially as many factors are now playing out in the recent days in the market.