Bitcoin (BTC) likely won’t see another bull run until late 2024 or the beginning of 2025, according to the co-founder of Huobi, one of the world’s largest cryptocurrency exchanges.
Du Jun said in a media interview that Bitcoin’s bull market is closely tied to a process called “halving,” which occurs every few years.
This relates to so-called cryptocurrency miners on the Bitcoin network, which run powerful specialized computers to solve complex mathematical puzzles to validate transactions. Successful miners are rewarded in Bitcoin.
Halving is written into Bitcoin’s underlying code and cuts in half the reward that so-called miners get for validating transactions on the cryptocurrency’s network. It occurs roughly every four years.
The last halving took place in May 2020, and in 2021, Bitcoin topped an all-time high above $68,000. A similar occurrence happened when halving took place in 2016. The following year, Bitcoin hit what was, at that time, a record high.
Following both those peaks, Bitcoin fell sharply. Currently, Bitcoin is nearly 40% off its record high from last November. The next halving event is scheduled to take place in 2024, said Jun.
The recent price drop in cryptocurrencies has got some market participants worried that a so-called “crypto winter,” or an extended period of bearishness, could be on the horizon.
