According to Changpeng Zhao, cryptocurrency exchange Binance is preparing for a potential surge in crypto activity in the near future.
At a Q&A event, Zhao said that Binance is making “a lot of preparation” to improve its systems and handle higher trading volumes over the next six to 18 months. He stated that he expects the crypto market to follow historical patterns that point to a four-year cycle of bull and bear phases.
Zhao added that the crypto market has shown signs of recovery in recent weeks, after a protracted slump that began when the FTX exchange suffered a massive drop that triggered a string of industry-wide bankruptcies.
Zhao said he is optimistic about the future of BTC and other cryptocurrencies, based on the assumption that the year after a Bitcoin halving is usually a bullish year. The last Bitcoin halving took place in May 2020, reducing the reward for mining new blocks by 50%.
Zhao Points To 2025 For Bitcoin Bulls
Regarding the next bull, Zhao said:
“The year after Bitcoin halving is usually a bull year. That's why I think 2025 could be a very interesting year.
It is difficult to predict the future. We are still at the very beginning. I think there is still a lot of room for growth in the industry.”
Zhao also touched upon the legal challenges Binance is facing in various countries such as the US, UK, Japan and Singapore. He said Binance is collaborating with regulators and seeking “the most appropriate, reasonable and mutually acceptable solution possible.”
*Not investment advice.