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Bitcoin We may not see a bull market until late 2024 or early 2025, if past price cycles are any indication, according to the co-founder of Huobi, one of the world’s largest cryptocurrency exchanges.
Du Jun told CNBC that the bitcoin bull market is closely linked to a process called halving, which occurs every few years.
This concerns the so-called Bitcoin network miners, which operate powerful specialized computers to solve complex mathematical puzzles to validate transactions on the Bitcoin network. Bitcoin miners are rewarded as a result.
Halving is written in the Bitcoin core code and halves the reward that so-called miners receive for validating transactions on the cryptocurrency network. It occurs approximately every four years.
the last halving event in may 2020And in 2021 Bitcoin Hits All-Time High Above $68,000. A similar event occurred when the halving occurred in 2016. The following year, Bitcoin hit what was At the time, it was a record.
After both peaks, bitcoin plummeted. Currently, Bitcoin is down nearly 40% from its November high, although it is still down from some of the lows seen in January. The next halving event is scheduled for 2024.
“If this cycle continues, we are now in the first phase of a bear market,” Du said, according to a CNBC translation of his Mandarin comments.
“It’s really hard to speculate exactly because there are many other factors that can affect the market as well – such as geopolitical issues including the war, or the recent Covid virus, also affecting the market,” he said.
“After this cycle, we will not be able to welcome the next Bitcoin bull run until the end of 2024 to the beginning of 2025.”
The recent drop in cryptocurrency prices has an impact Got some market participants Worried that a so-called “crypto winter,” or an extended period of downside, is imminent. During these times, bitcoins May be trading sideways.