Zhao suggested in an interview on February 20 that Bitcoin's price will continue to move up in the future because of bitcoin halving 2020
The CEO explained that Bitcoin's block reward halving has had a positive impact on the price of the coin in the past. Admitting that historical events do not necessarily predict future events, he found that miners have to spend almost twice as much to mine a single coin.
BinanceCEO Zhao found that the price of an asset depends on demand, not production costs, but expects the miners to be unwilling to sell below the production price.
Demand increases while supply decreases
In addition, Zhao said another consequence of a lower Bitcoin block reward is lower inflation, which should also contribute to the price hike. He noted that the effects of lower coin production are increased by an increasing number of users in the room, and said:
"The demand side increases, the supply side decreases."
However, Zhao also said he expected resistance to keep Bitcoin's price at $ 10,000 for some time, saying, "There are psychological barriers to nice round numbers. So 10,000 is a very nice round number, so the price [...] will fluctuate a bit. "
Investors are increasingly optimistic about Bitcoin
While the price of Bitcoin has just dropped below $ 10,000 again, the outlook for Bitcoin is largely positive, according to many experts.
50-day moving average of Bitcoin has exceeded the 200-day moving average. Known as the "golden cross", this rare bullish sign suggests that Bitcoin can hit $ 26,000 in just two months thanks to a bullish event that previously triggered a price increase of 170%.
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