In a recent social media post, Binance CEO Changpeng Zhao sparked excitement in the cryptocurrency community by sharing a screenshot with a countdown to the upcoming Bitcoin halving. According to Zhao’s post, this highly anticipated event is planned to take place in the first week of April 2024.
Binance CEO follows Bitcoin halving
Bitcoin halving, a major event in the cryptocurrency’s protocol, involves block rewards being halved approximately every four years. This reduction in rewards means miners will compete for blocks with a dwindling supply of newly minted Bitcoin. The countdown shared by Zhao shows that the fourth Bitcoin halving is expected to occur 135 days from November 19, 2023.
The historical context of the Bitcoin halving adds to the interest. The first halving took place in 2012 and reduced block rewards from 50 BTC to 25 BTC. The second halving in 2016 further halved the rewards to 12.5 BTC. In the last halving in 2020, the rewards dropped to 6.25 BTC. Analysts often associate Bitcoin halving with significant price increases. The reduced supply of new Bitcoin following a halving event creates a supply shock, putting upward pressure on prices. Notably, Bitcoin reached an all-time high (ATH) of approximately $69,000 approximately 18 months after its third halving.
What will happen in the upcoming halving?
As the next halving approaches, miners’ rewards will drop to 3,125 BTC. Analysts are optimistic about the upward trend after this decline. Bitcoin’s current positive momentum is strengthening analysts’ bullish perspectives, partly in anticipation of the approval of the US Bitcoin spot exchange-traded fund (ETF). As of the time of writing this report, Bitcoin is trading at $37,157.63. It reached a high of $37,517 on a daily basis, likely due to Milei’s presidential victory in Argentina. It shows an impressive increase of 1.57% in the past day, 0.54% in the past week and 27.19% in the past month. Bitcoin’s resilience continues to solidify its position as the leading cryptocurrency with a market cap of $725.38 billion.
Meanwhile, the amount of Bitcoin held in centralized exchange wallets has exponentially reached its highest level since May, according to Glassnode. This increase could be a sign of a slowdown in the BTC bull market. The exchange balance reached 2.35 million BTC, worth approximately $1.16 billion. Logins to exchange wallets often indicate that investors want to sell or use their Bitcoins for futures and options trading. The steady positive change in the net position since November 1 indicates the possibility of a market slowdown.
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