Bitcoin will not see a bullish (continuous upward price trend) until late 2024 or early 2025 if past price cycles are still any indication. This was conveyed by Du Jun, the founder of Huobi, one of the largest cryptocurrency exchanges (crypto money) in the world.
Du Jun told CNBC International that bitcoin bulls are closely related to a process called a halving that occurs every few years.
This incident is related to miners on the bitcoin network running specialized computers to solve complex mathematical puzzles. This is done to validate transactions on the bitcoin network. Miners are rewarded in bitcoins as a result.
Halving goes into bitcoin’s base code and cuts in half of the reward miners earn for validating transactions on the cryptocurrency network. It happens about once every four years.
The last halving occurred in May 2020 and in 2021, Bitcoin hit an all-time high above $68,000. A similar incident occurred when the halving occurred in 2016. The following year, Bitcoin hit a record high at the time.
“It is very difficult to predict precisely because there are so many other factors that can affect the market as well – such as geopolitical issues including war, or Covid,” Du Jun said.
Following those two peaks, bitcoin soon fell. Currently, bitcoin is down nearly 40% from its record high since last November, although it is still down from some of the lows seen in January. The next halving schedule is predicted to take place in 2024.
“Following this cycle, it won’t be until late 2024 to early 2025 that we can welcome the next bull market in bitcoin.” he said.