Previous price cycles indicate that a new bull market for Bitcoin may not occur until late 2024 or early 2025. Such an opinion in an interview CNBC said Du Jun, co-founder of the Huobi exchange.
According to him, the price cycles of bitcoin are closely related to halvings – periodic halvings of the block reward embedded in the algorithm, which occur approximately every four years.
The last halving took place in May 2020, and the following year, the quotes of the first cryptocurrency reached an all-time high above $68,000. A similar price movement was observed after 2016. Bitcoin reached record levels in December 2017, Du recalled.
In both cases, deep falls in the digital gold price followed. At the time of writing, the flagship is trading at levels below $40,000 – the price has fallen by approximately 42% from the maximum.
“If this cycle continues, we are now in the early stages of a bear market,” Du said.
Based on the trend, he expects Bitcoin to bullish only after the next halving in 2024.
“In reality, this is difficult to predict accurately, as there are many other factors that can affect the market, such as geopolitical issues, including war, or the recent COVID,” he added.
Recall that in January, Glassnode analysts, based on bitcoin on-chain metrics, stated the onset of a bearish trend in the price of the first cryptocurrency.
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Previous price cycles indicate that a new bull market for Bitcoin may not occur until late 2024 or early 2025. Such an opinion in an interview CNBC said Du Jun, co-founder of the Huobi exchange.
According to him, the price cycles of bitcoin are closely related to halvings – periodic halvings of the block reward embedded in the algorithm, which occur approximately every four years.
The last halving took place in May 2020, and the following year, the quotes of the first cryptocurrency reached an all-time high above $68,000. A similar price movement was observed after 2016. Bitcoin reached record levels in December 2017, Du recalled.
In both cases, deep falls in the digital gold price followed. At the time of writing, the flagship is trading at levels below $40,000 – the price has fallen by approximately 42% from the maximum.
“If this cycle continues, we are now in the early stages of a bear market,” Du said.
Based on the trend, he expects Bitcoin to bullish only after the next halving in 2024.
“In reality, this is difficult to predict accurately, as there are many other factors that can affect the market, such as geopolitical issues, including war, or the recent COVID,” he added.
Recall that in January, Glassnode analysts, based on bitcoin on-chain metrics, stated the onset of a bearish trend in the price of the first cryptocurrency.
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