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According to Changpeng Zhao, Bitcoin halving does not have a set price. But after the event, we may expect that the BTC price will react positively.
In less than three months, the most anticipated event for the crypto community will take place: Bitcoin halving. Scheduled for May, Bitcoin halving happens at every 210,000 blocks and cuts down the supply of BTC, making the asset more scarce. Now the reward for each block is 12.5 Bitcoin and after halving it will be 6.25 Bitcoin.
It takes four years to get to 210,000 blocks. The first halving took place in 2012 when each block was rewarded with 25 BTC. After bitcoin halving for the second time in 2016, each block was rewarded at 12.5 BTC. This year, halving will happen the third time.
Since the end of 2019, there have been discussions about whether the upcoming event has already influenced the crypto market or not. Besides, many wonder if the supply reduction will lead to an increase in prices to maintain operations. Some учзукеы believe in the increase, while others state the opposite.
Binance CEO Changpeng Zhao has shared his own opinion on the issue. Being open to all possible courses of events, he noted that it is difficult to predict what will definitely happen. According to Zhao, predictions about cryptocurrencies are usually wrong. However, he stated the halving of Bitcoin does not have a set price, considering the market situation in the past and in the present.
"I personally believe the halving has not been priced in."
— BLOCKTV (@BLOCKTVnews) February 19, 2020
According to Binance CEO, the price is likely to go and come, as Bitcoin strives to break down and maintain the prices above the resistance of $ 10,000. But after the halving, we may expect that its price will have a positive impact.
Zhao has also told to BlockTV:
“People need a lot of time to let concepts sink in and adjust. Economic theory tells us that the bitcoin price will likely increase, but this is just the theory and hard to predict.”
Bitcoin Halving: Previous Experience
Changpeng Zhao is not alone in his opinion. As we have recently reported, the CEO of Lolli Alex Adelman also believes the Bitcoin halving has not yet been priced in. But he is sure that after the event, Bitcoin will surge.
Notably, in previous halvings in 2012 and 2016, it took over a year for the market to start surging in both instances. For example, back in 2012 when Bitcoin was worth $13.42, the halving had no effect on the price. However, Bitcoin was not as popular as nowadays. One year later, Bitcoin price surged to $1,100. Then it fell to around $220 and remained below $1,000 for the next few years.
After the halving in 2016, the BTC price slumped from $707 to $570. But then it flew to $20,000 in the great bull run in 2017.
Judging by the previous halvings, Bitcoin price may surge this time as well. But how much time it will take for the price to increase is unclear. Currently, Bitcoin is trading at $9,751.68.