According to Zhao, the effects of a halving usually take time to materialize.
The cryptocurrency industry is awash with anticipation as the all-important Bitcoin halving event date draws closer. However, there have also been many predictions for what may happen in the aftermath of the event, which is expected to take place in April 2024. One such Bitcoin halving prediction is that of Binance CEO Changpeng Zhao (CZ).
Zhao recently shared some insights from the previous three Bitcoin halvings in an attempt to drive home his point that there is no certainty about predicting any future outcomes.
According to him, the crypto space is usually in a state of euphoria and enthusiasm in the months leading up to the halving. This period, he says, generally translates to an overall positive outlook for Bitcoin and its teeming supporters.
However, contrary to popular belief that Bitcoin halving may cause an overnight double-fold price surge, CZ warns that that is usually not the case. According to Zhao, the effects of a halving usually take time to materialize. Besides, historically, the year following a Bitcoin halving is when the cryptocurrency usually hits multiple all-time highs (ATHs) in terms of price.
So, Zhao believes that many people need to take time out to study the pattern to understand what brings about these remarkable surges. Otherwise, those expecting the abrupt price surge will simply end up getting more confused, he concluded.
Zhao: Past Bitcoin Halving Outcomes Do Not Guarantee Future Results
Interestingly, CZ also warned about the need to not be overly anxious about the upcoming halving. According to him, past performance does not guarantee future results. But that is as plain as anything gets, especially in a world as volatile as crypto’s, where nothing that happened in the past can suggest a certain future.
For what it’s worth though, it appears established that halving events generates the needed hype (positive sentiment) for a price surge. However, there are always those other factors (negative) that may also influence the price trends in the other direction. That is what CZ’s examination of the Bitcoin halving event has brought to light.
As of publication, CoinMarketCap data suggests that Bitcoin (BTC) price is down 1.19% to be trading at $27,540.92. However, on the monthly chart, the crypto has gained over 6%, suggesting a growing interest in the crypto as halving nears.