Bitcoin May See Another Round of Uptrend only in 2024
As per the co-founder of Huobi, one among the world’s biggest cryptocurrency exchanges, Bitcoin may not witness a bull run before the final quarter of 2024 or even early 2025, based on previous price patterns.
Bitcoin bull markets, according to Du Jun, are intimately linked to a phenomenon known as halving, which happens once in roughly four years.
This refers to the bitcoin network’s so-called miners, who use sophisticated systems to resolve complicated mathematical riddles in order to verify trades. As a consequence, miners get paid in bitcoin.
Halving is a feature of bitcoin’s source code that reduces the incentive given to “miners” for verifying trades on the cryptocurrency’s blockchain by half. It happens around four years or so.
The most recent halving occurred in May 2020, and bitcoin reached a historical high of almost $68,000 in 2021. When the halving was implemented in 2016, a comparable situation occurred. The next year, bitcoin reached a new high, which was a fresh peak during that period.
“Since there are several variables that might impact the market, including geopolitical events like war and latest Covid, it is difficult to anticipate precisely what will happen.” Huobi co-founder Du Jun.
Bitcoin fell after each of these peaks. Currently, the price of bitcoin is around 40% lower than it was in November, but it’s still above the lows observed in January. According to the timeline, the next halving incident will occur in 2024.
As per a CNBC interpretation of Du’s Mandarin statements, “if this cycle continues, we are currently in the initial stages of a bearish trend. It’s incredibly difficult to anticipate precisely because there are several events that may effect the market,” he added, citing international concerns like as conflict and the latest Covid as examples.
If this trend continues, the next bull market in bitcoin won’t start until late 2024 or early 2025. A segment of crypto investors fear that a “crypto winter,” or a protracted spell of bearishness, might be on the horizon due to the latest price decline in the numero uno crypto. Bitcoin may trend in a sideways manner during such periods.