In an interview On February 20, Zhao suggested that Bitcoin's price would move higher in the future.
The CEO explained that historically, Bitcoin halving has had a positive effect on the price of king coins. Although he admits that historical events are not entirely predictable of the future, he emphasized that miners will have to spend almost twice the cost to mine a coin.
Zhao noted that the price of an asset is determined by demand, not production costs, but it is hoped that mining companies will not sell at a loss – below production cost.
Demand is increasing while supply is decreasing
Moreover, Zhao said that another consequence of halving is that inflation will be less, which will also help prices rise. He mentioned the effects of lower coin production will be strengthened by the growing number of users in the space.
“The demand side is increasing, and the supply is decreasing.”
However, Zhao also explained that he hopes there will be a resistance level that keeps Bitcoin price at around $ 10,000 for a while, saying, “There are psychological hurdles around the good round figure. So $ 10,000 is a very nice round number, so (…) the price will fluctuate around a bit. ”
Investors are increasingly bullish on Bitcoin
Although the price of Bitcoin has dipped below $ 10,000 again, the outlook of Bitcoin experts remains largely positive.
Recently, CoinTelegraph market analyst Keith Wareing pointed out that the 50-day moving average has crossed up with the 200-day moving average of Bitcoin. This rare bullish sign is known as a “golden cross,” and he thinks Bitcoin could reach $ 26,000 in just the next two months thanks to a previous bullish event – which saw BTC price increase by 170 percent.
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According to CoinTelegraph
Translated by ToiYeuBitcoin