Binance CEO Explains the Uniqueness of the Upcoming Bitcoin Halving

Binance CEO Explains the Uniqueness of the Upcoming Bitcoin Halving

721
Author: Robert Strickland (crypto-journalist)
Subscribe

 

Binance CEO Explains the Uniqueness of the Upcoming Bitcoin Halving

Richard Teng, the head of the Binance cryptocurrency exchange, has elaborated on the uniqueness of the fourth Bitcoin halving. Teng believes that the fundamental value of Bitcoin will depend on its liquidity and the recognition of cryptocurrency as a full-fledged asset class.


 

According to Richard Teng, the CEO of the largest cryptocurrency exchange, Binance, the upcoming Bitcoin halving will occur under "unique" circumstances. In comments to The Block, Teng, who took over Binance in November 2023 after its founder Changpeng Zhao stepped down, pointed out that the fourth Bitcoin halving is unique because it will take place against the backdrop of several other significant events in the Bitcoin ecosystem and will coincide with a period of growth in both the cryptocurrency and global markets as a whole.

In addition to the increased interest from institutional investors, driven by the launch of Bitcoin exchange-traded funds (ETFs), Teng believes that there is currently a boom in activity in second-layer networks (Layer 2) and decentralized finance (DeFi) protocols on the Bitcoin blockchain. Much of this growth is attributed to the popularity of the Ordinals protocol, which allows for the issuance of NFTs based on Bitcoin.

According to Teng, the price of Bitcoin tends to rise for six months after each halving, which leads to a reduction in the issuance rate of the first cryptocurrency. Teng believes that the reduction in the supply of new Bitcoin coins is the key factor driving its price growth.

"While these factors inspire optimism, investors, especially newcomers, should assess the situation soberly and not succumb to hype," Teng wrote. "Expectations of sharp price increases after the halving often do not materialize, and the true value of Bitcoin will be demonstrated in its long-term price dynamics, liquidity, adoption, and recognition of cryptocurrency as a full-fledged asset class."

The price of Bitcoin will largely depend on the overall market sentiment and the pace of adoption of the first cryptocurrency, concluded the current head of Binance.

 

bc1q7smzfz5t4g2vp7ul822793pd6282myys40ne4n 

Thank You for Donating Bitcoin
bc1q7smzfz5t4g2vp7ul822793pd6282myys40ne4n

Other news

Popular Ethereum Wallet MetaMask to Add Bitcoin Support
The Roscongress Foundation released a study on Bitcoin
Correlation Between Bitcoin and Nasdaq 100 Reaches Highest Level Since August 2023
Companies Reveal Investments in Bitcoin ETF Stocks: Who Bought and How Much
Turkey will introduce a tax on cryptocurrencies and supervise exchanges. What you need to know.
Capital inflows into Bitcoin ETFs have resumed. What has changed?
Trustpilot