Changpeng Zhao, the CEO of Binance – arguably the largest and most popular cryptocurrency exchange in the world – says that the bitcoin price is set to increase heavily over the next few months.
Changpeng Zhao – BTC Will Rise Up
In a recent interview, Zhao stated that he’s avoided predicting the bitcoin price up until this point on account of 50 percent of the time, these predictions will likely be wrong (Tom Lee could probably take a lesson or two from this man). However, this time around, he’s confident bitcoin is poised to spike ever higher, and comments:
The bitcoin price will likely increase. I personally believe the halving has not been priced in.
The halving is set for this May, and it’s got everyone on pins and needles. Nobody really knows what’s going to happen for sure, but in the past, every time the world’s number one cryptocurrency by market cap incurs such an event, the price spikes through the roof to figures nobody thought possible.
Zhao believes this time will be no different, though he’s assuring people that they shouldn’t just fall into a place of simply “expecting something” just because it happened before. He states that every situation is different, and just because a halving led to a massive price rally in the past, doesn’t necessarily mean it will happen again.
While he’s confident that bitcoin will jump further, he’s warning people to remain cautious, and states that they shouldn’t simply expect the same results without thought. He explains:
Historic events do not predict future events, so don’t take that too literally. It costs miners almost double what it does now to produce one bitcoin. Psychologically, those miners won’t be willing to sell below that price. New bitcoin coming to market will be severely limited and at the same time, we’re seeing more users and traders coming in. Economic theory tells us that the bitcoin price will likely increase but this is just the theory and very hard to predict.
Nevertheless, he tells his readers that he’s feeling “pretty positive” that bitcoin will live up to expectations this coming May.
A Good Year for the Currency
Bitcoin has no doubt had a fantastic year thus far, initially starting out 2020 at a measly $6,900 and spiking by nearly $3,000 since then. At the time of writing, the currency is trading for well over $9,800, and while this is less than where it was hovering last week, the currency has shown a certain resilience and has jumped up from the $9,500 mark it recently fell to.
Between the coronavirus, activity from CME Group in Chicago, and political tensions rising between the United States and Iran, bitcoin is now often viewed as a digital form of gold in that it can help preserve wealth and stability during times of economic strife.