Bitcoin CEO Doubts New ATH by 2024
The CEO of Binance, Changpeng Zhao (CZ), believes that Bitcoin (BTC) will not reach a new all-time high (ATH) before 2025. As the Bitcoin halving approaches, CZ warns the crypto community to prepare for a prolonged recovery. In a blog post on Binance Feed, CZ mentions the emotions that will surround the halving, including anxiety, expectations, hype, and hope.
CZ draws from his experience and states that the bitcoin price will not immediately double after the halving. However, he suggests that the market may enter a bull run following the event. CZ highlights that the history of bitcoin’s price does not guarantee future performance and there is no proven causation.
Currently, Bitcoin is trading at $27,508, more than 60% lower than its ATH in November 2021. The next Bitcoin halving is expected in April 2024, which will reduce the block reward from 6.25 to 3.125 BTC.
The Impact of Bitcoin Halving
The upcoming Bitcoin halving in April 2024 will have significant implications for various aspects of the cryptocurrency. When a Bitcoin halving occurs, the reward given to miners for validating transactions on the blockchain is cut in half. This reduction takes place approximately every four years or after mining around 210,000 blocks.
One of the main impacts of halving is on BTC’s value. Historically, after previous halvings, Bitcoin has experienced multiple all-time highs (ATHs) in the following year. However, it’s important to note that past performance does not guarantee future results.
Mining profitability is also affected by halving. With reduced block rewards, miners earn fewer bitcoins for their efforts. This can lead to a decline in mining activity or prompt miners to seek more efficient methods and technologies.
Hot Take: Bitcoin’s Future Uncertainty
As the next Bitcoin halving approaches, the CEO of Binance casts doubt on the cryptocurrency’s ability to reach a new all-time high (ATH) by the end of 2024. While the halving has historically been followed by bullish market conditions and ATHs in subsequent years, Changpeng Zhao (CZ) emphasizes that past performance is not indicative of future outcomes.
The crypto community should prepare for a potentially long recovery period, according to CZ. With Bitcoin currently trading significantly below its ATH, there are uncertainties regarding its price trajectory. Nevertheless, the halving event remains a significant milestone for Bitcoin and will impact its value and mining profitability.
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