Du Jun, the CEO of the Huobi cryptocurrency exchange, believes that, based on the historical dynamics of the bitcoin price, a “bullish trend” should not be expected until the beginning of 2025.
In a conversation with CNBC, Du Jun explained that the price of bitcoin is highly dependent on the halving of the reward to miners, which is held every four years. The third halving took place in May 2020, and in November 2021, Bitcoin reached an all-time high of $69,000. A similar situation occurred after the halving of the reward in 2016 – the following year, Bitcoin exceeded $20,000. “, which lasted for several years.
Jun believes that the current situation in the cryptocurrency market is developing according to the same scenario. Bitcoin is currently trading at around $39,000 per coin, down 40% from its all-time high reached in November. At the same time, he noted that it is really difficult to predict the further “behavior” of bitcoin, since many factors, for example, a pandemic and geopolitical problems, can significantly affect the market.
“After both peaks, the price of bitcoin fell. The next halving is scheduled for 2024. Based on this cycle, we are now in the early stages of a bear market. Therefore, a bullish trend should only be expected at the end of 2024 or the beginning of 2025,” Huobi founder said.
Many analysts predict the onset of another “crypto winter”. However, Benjamin Cowen believes that the bitcoin rate largely depends on the dynamics of the stock market, and if the NASDAQ and S&P 500 stock indices show a long-term growth, then bitcoin will return to the “bull trend”. DAppRadar researchers are completely afraid that a protracted “crypto winter” can “weed out” 80% of DeFi projects that have not yet felt its impact, so only the largest and most sustainable projects will remain on the market.
Source: Bits
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