Bitcoin, the world’s most dominant cryptocurrency, may be at the very beginning of a long bearish trend, according to Du Jun, the co-founder of one of the world’s leading crypto exchange platforms Huobi.
Explaining the reason for his position, he said the Bitcoin bull market usually kicked off after the halving method integrated into the project. The last Bitcoin halving happened in May 2020, given it is a four-year circle, the next one will take place in 2024.
It should be recalled that Investors King had defined Bitcoin halving as a process in which the number of Bitcoin earned by miners, known as a block reward, is halved. Presently, miners earn 6.25 Bitcoins every 10 minutes, this number would be halved into two in 2024. Meaning, miners would be earning 3.125 Bitcoins from 2024.
This process helps reduce the supply of Bitcoin in circulation and creates scarcity since mining is the only way Bitcoin is earned and supplied into the global market. It was after halving of 2020 that Bitcoin rose from $2,800 a coin to $66,900 in 2021 after plunging from $20,000 in 2018. The process has been the same since 2009.
“If this circle continues, we are now at the early stage of a bear market,” Du said, in an interview with CNBC.
“It is really hard 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,” he said.
“Following this cycle, it won’t be until end of 2024 to beginning of 2025 that we can welcome next bull market on bitcoin.”
