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Changpeng Zhao's Take on The Upcoming Bitcoin Halving

Zain Raza by Zain Raza - 04:02 AM Feb 21, 2020
Changpeng Zhao's Take on The Upcoming Bitcoin Halving

CEO of crypto exchange Binance, Changpeng Zhao has suggested that the highly bullish block reward halving factor hasn't kicked in, thus current bitcoins (BTC) price volatility is not to be worried about. He also suggested that Bitcoin’s movement will go upwards during an interview on February 20.

Binance CEO explained that taking the past into account, Bitcoin’s reward halving has lead to a positive influence on the price. While he admitted that there’s no guarantee of what the price would be after halving, he stated that he expects a miner to spend double the amount to mine a single coin.

Changpeng Zhao Notes Other Factors That Can Contribute to Halving

Zhao noted that an asset’s price is determined not by the cost of production but by its demand, but still, he holds the view that miners will not fancy selling below the production cost.

Zhao further said that less inflation would also play a part, which might bump the price further. He further noted that the number is expected to grow by leaps and bounds given the effects of lower-cost production. He added:
“The demand side is increasing, the supply side is decreasing."
Zhao holds the opinion that resistance is beckoning which would keep Bitcoin around the 10,000 marks for a while stating that
“There are psychological barriers around nice round numbers. So 10,000 is a very nice round number, so [...] the price will fluctuate back and forth around that a bit."
Bitcoin price has fallen below $10,000 again, but it is still being held in positive regard according to experts. We witnessed this week that Bitcoin saw its 50-day moving average cross over its 200-day moving average. leading to the formation of the golden cross.

Zhao also boldly claimed that Bitcoin can hit the $26,000 in the next two months given the golden cross which earlier blasted gains by a staggering 170% price gains.

About The Author
Zain Raza

Zain RazaZain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

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