Is Bitcoin’s “halving market” an urban legend or is it true? Some people believe that "prices will rise after halving" is a market law, but others believe that it is just a gimmick used by market makers to speculate and control the market. In this regard, Binance CEO Changpeng Zhao (CZ) recently issued an article stating that he expects that after the halving in April next year, Bitcoin will be expected to soar to new all-time highs many times, but he still advises investors not to be too early Falling into "FOMO" mood.

In order to curb currency price inflation, the block reward of the Bitcoin network will be "halved" approximately every four years, and the next halving is expected to occur in April 2024. By then, the output of Bitcoin will be reduced. Mining rewards dropped from 6.25 Bitcoins to 3.125 Bitcoins.

Bitcoin has experienced three mining reward halvings in November 2012, July 2016, and May 2020, and all three halvings represent the beginning of the next round of bull market. However, whether the halving of rewards will bring about an upward trend in prices, and how strong the upward trend will be, is still a matter of divergent opinions.

Changpeng Zhao recently shared his experience of witnessing three halving events in the past. He pointed out that in the months before the Bitcoin halving, more and more rumors, news, anxiety and hype will begin to emerge in the market, but He also warned that this does not mean that Bitcoin will double overnight after the halving. A more reasonable situation is that it will gradually climb upward over the next year and break through all-time highs many times.​

Generally speaking, the year after the halving is usually a "bull market year." Although no one can accurately predict the market direction, the halving event has generally been regarded as a bullish signal. However, Changpeng Zhao reminded that "history cannot predict the future." Moreover, there has not been any proven relationship between the Bitcoin halving and the rise and fall of currency prices.

This article Changpeng Zhao talks about the "halving market": Optimistic about Bitcoin repeatedly breaking new highs. First appeared on Blockchain.