Changpeng Zhao, the founder and CEO of major crypto exchange Binance, suggested that Bitcoin'south (BTC) toll has not yet adapted to the upcoming block advantage halving.

Zhao suggested that Bitcoin's cost volition meet more than upward movement in the futurity during an interview on February. 20.

The CEO explained that, historically, Bitcoin'due south block reward halvings have had a positive impact on the money's price. While he admitted that celebrated events do not necessarily predict hereafter events, he noted that miners will have to spend almost two times as much to mine a single coin.

Zhao noted that an asset'southward toll is determined by demand, not the toll of production, but expects that miners will non be willing to sell below the cost of product.

Demand is increasing while supply is decreasing

Furthermore, Zhao said that another consequence of a lower Bitcoin block reward is less inflation, which should besides help the price rise. He noted that the effects of lower coin production volition be augmented by an increasing number of users in the infinite, stating:

"The demand side is increasing, the supply side is decreasing."

Even so, Zhao also explained that he expects there to be a resistance that will keep Bitcoin's price around $10,000 for some time, saying, "There are psychological barriers around nice round numbers. So 10,000 is a very nice round number, so [...] the cost will fluctuate back and along around that a flake."

Investors increasingly bullish on Bitcoin

While Bitcoin's price just dropped below $x,000 again, the outlook for Bitcoin is more often than not positive co-ordinate to many experts.

Recently, Cointelegraph market analyst Keith Wareing reported that this week saw Bitcoin's ascending 50-day moving average cross over its 200-day moving average. This rare bullish sign is known as a "golden cross," and he suggests that Bitcoin tin hit $26,000 in simply two months cheers to a bullish event that previously triggered 170% toll gains.