Du Jun, the co-founder 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 talk with CNBC, Du Jun explained that the price of bitcoin is highly dependent on the Bitcoin halving, which reduces miners’ rewards after every four years. The third halving took place in May 2020; Bitcoin reached an all-time high of $69,000. A similar situation occurred after the halving of the miner’s rewards in 2016 – the following year, Bitcoin exceeded $20,000.
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 complicated to predict the further “behavior” of bitcoin since many factors, like pandemic and geopolitical problems, can significantly affect the crypto market.
He told CNBC:
“It is tough to predict exactly because there are so many other factors which can affect the market as well — such as geopolitical issues including war, or recent Covid, also affect the market,”
Jun believes this is only begging of the bearish market:
“If this circle continues, we are now at the early stage of a bear market,”
According to him, the current bearish cycle will last until 2024
“Following this cycle, it won’t be until the end of 2024 to the beginning of 2025 that we can welcome the next bull market on bitcoin.”
Recently US Investment Bank Stifel Report discussed 3 Macroeconomic Factors that Could Take Bitcoin To $10K.
DAppRadar researchers assume that a protracted “crypto winter” can “weed out” 80% of DeFi projects that have never felt crypto winter impact, so only the largest and most sustainable projects will remain on the market.
Many analysts predict the onset of another “crypto winter.” However, Benjamin Cowen believes that the bitcoin rate largely depends on the stock market dynamics, and if the NASDAQ and S&P 500 stock indices show long-term growth, then bitcoin will return to the “bull trend”.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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