According to Du Jun, co-founder of China-based Huobi, one of the largest crypto exchanges in the world, Bitcoin is entering a period where prices are constantly falling, namely the ‘bear market’. It’s also a bear market that will have huge implications.
Speaking to CNBC on Sunday, Du made some explanations and predictions about the Bitcoin market. Stating that Bitcoin prices are generally affected by a technological change called ‘halving’ in the cryptocurrency network, Du stated that the next big rally will only come towards the end of 2024 or the beginning of 2025.
The next bull period will take place approximately one year after the halving
An important feature of Bitcoin, halving, the reward per block in mining production periodically means halving. Finally, for the halving that took place in 2016 and 2020, crypto analysts are now pointing to the year 2024.
Du, who stated that in 2017 and 2021, the years after the halving, a period of continuous increase in prices, in other words a bull market, occurred, and that the next bull period is likely to take place approximately one year after the 2024 halving. records that. This means that with the halving process, the supply will decrease and the price will increase.
Du states that we are currently in the early stages of a bear season if the current cycle continues. On the other hand, Du states that it is very difficult to predict this, as there are many factors that can affect the market, such as geopolitical problems and COVID-19.
‘Bitcoin winter’ is coming
The class of cryptocurrencies, backed by central bank incentives over the past two years, will see the Federal Reserve cut interest rates sharply in 2022. It had been hit hard by the plans to raise money. Bitcoin, which has been falling since November, when it saw a record level by reaching $ 69,000, fell to $ 37,683 with a 1.8 percent drop on the Coinbase exchange on Monday morning.
Many investors, on the other hand, think that the “Bitcoin winter” is imminent, with Bitcoin prices falling and not recovering for at least a year. Previously, such a decline had occurred between late 2017 and mid-2019, when Bitcoin slumped from around $20,000 to just under $4,000.
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