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Binance CEO Changpeng Zhao anticipates Bitcoin (BTC) hitting new all-time highs following the April 2023 halving. However, he cautions against succumbing to fear of missing out (FOMO) prematurely. CZ highlights recurring trends during BTC halvings, such as hype, heightened expectations, and market volatility.
He emphasizes that BTC’s price won’t skyrocket overnight but will undergo adjustments and consolidation. CZ also points out that historically, about a year after the halving, BTC achieves multiple all-time highs, as was the case after the May 2020 halving when it surged from $8,000 to $29,000 in early 2021.
Binance’s CEO Changpeng Zhao is keeping a close watch on the upcoming Bitcoin halving, which is set for April 25 next year. He believes that BTC could reach new record highs following the event but offers some non-financial advice for those who might experience FOMO (fear of missing out) too early.
Recently, Binance added a countdown to the Bitcoin halving on its homepage. In response, CZ shared his thoughts on what might occur around the halving, drawing from his experience with the past three halvings.
Although it’s important to remember that history doesn’t guarantee the future, CZ pointed out the typical patterns leading up to the BTC halving:
The Bitcoin halving tends to create a lot of excitement and stress for investors and the crypto community in general. News, hype, anxiety, hope, and social media narratives can magnify bullish or bearish feelings among investors.
Beware of Overextending
Users might be tempted to increase their Bitcoin holdings or make big bets in anticipation of significant gains. However, CZ issues a warning that the crypto market can be highly unpredictable, and it’s crucial to remember that Bitcoin’s price won’t double overnight. Instead, the halving sets off a series of adjustments and price consolidation.
CZ suggests that it’s usually about a year after the halving when Bitcoin can achieve multiple All-Time Highs (ATHs). For instance, after the last halving in May 2020, Bitcoin was priced at around $8,000. It wasn’t until the first quarter of 2021 that BTC started experiencing several ATHs. This began in January with a remarkable 231% surge, ultimately reaching $29,000.
Bitcoin’s Price History
BTC’s Post-Halving Performance: CZ pointed out that in the year following the halving, Bitcoin often reached multiple All-Time Highs (ATHs). He acknowledged that people might wonder why this happens, emphasizing that human memory tends to be short. However, he cautioned that this historical pattern doesn’t guarantee future outcomes.
BTC’s Recent Recovery: Even with the various challenges and a generally bearish sentiment in the crypto market, Bitcoin managed to bounce back. It went from an average price of around $16,500 in January 2023 to $27,545 at the time of this statement, marking a significant 66% price increase.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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