bitcoin According to co-founder Huobi, one of the world’s largest cryptocurrency exchanges, the bullish market may not be observed until late 2024 or early 2025, if past price cycles are any sign.
Du Joon told CNBC that bullish bitcoin markets are closely linked to a process called halving that occurs every few years.
This applies to so-called miners in the bitcoin network, who control powerful specialized computers to solve complex mathematical puzzles to verify transactions in the bitcoin network. As a result, miners are rewarded in bitcoins.
Halving is written in the base code of bitcoin and halves the reward received by the so-called miner for checking transactions in the cryptocurrency network. This happens about every four years.
The last In May 2020, it happened in halfand in 2021 bitcoin has surpassed a historical high above $ 68,000. A similar incident occurred when the 2016 Halving took place. The following year Bitcoin achieved what it was at that time record high.
After both of these peaks bitcoin fell. Bitcoin has now fallen nearly 40% from its record high in November, although it is still at the low level seen in January. The next event is half scheduled for 2024.
“If this cycle continues, we are now in the early stages of a bear market,” Doo said, according to a CNBC translation of his comments in Mandarin.
“It’s really hard to predict accurately because there are so many other factors that can also affect the market – for example, geopolitical issues, including the war, or the recent Covid, also affect the market,” he said.
“After this cycle, we can welcome the next bullish bitcoin market only in late 2024 – early 2025.”
The recent drop in cryptocurrency prices has received some market participants concerned that a so-called “crypto winter” or a long period of bearish growth may be inevitable. In such times bitcoin can trade sideways.