TL;DR Breakdown:
- Huobi co-founder predicts that a Bitcoin bull run won’t happen again until 2024.
- BTC bull run is closely tied with the halving process.
- The overall crypto market is down by 3.8% in the last 24 hours.
It’s hard to believe Bitcoin was soaring above $60K just four months ago, and now it’s just trading above $37k. It just goes to show that crypto volatility is still holding the industry back significantly. Although it’s not a surprise to see Bitcoin prices ride the roller coaster frequently, the co-founder of Huobi Du Jun thinks that BTC won’t reach back to its previous heights until 2024.
Huobi is one of the top-5 crypto exchanges in the world in terms of trading volume. The platform’s co-founder came to CNBC yesterday to talk about the current crypto market. According to Du Jun, there’s a specific cycle in crypto that occurs every 4 years, which is similar to Bitcoin halving. It’s the scenario when BTC mining profits are cut in half to ensure that Bitcoin doesn’t exceed the 21 million circulations.
Du Jun specified that the Bitcoin bear and bull market is closely tied with the halving process. In 2012, half Bitcoins were released into circulation which led to the bull market in 2013. This was the time when BTC price increased from $20 to $200. The second halving took place in 2016, which led to the 2017 bull market. The last halving happened in 2020, which similarly triggered a bull run in 2021. Based on this pattern, Du Jun believes that we are in the early stages of a bear market.
However, the Huobi co-founder also specified that there are several other factors that can affect the market, including Covid-19 and geopolitical issues. BTC has lost more than 40% of its value compared to its all-time high in November 2021.
Will Bitcoin continue to dip in the crypto winter?
The ongoing bear market initiated with the crash of the US stock market amidst the omicron variant worries. Its ongoing downfall is being contributed by larger sell-offs across the market. Bitcoin went up to $44k last week, which saw traders embark on profit-booking and sell-off.
Our earlier BTC price analysis showed that Bitcoin was rejecting a further downside below $37,500. However, it has further moved down to $37,000 creating more worries for the market. Investors were hoping for a bull run after Ukraine’s news of legalizing cryptocurrency, but large scale sell-offs are indicating that the crypto-winter might continue into March.