Some experts warn that the crypto market might click into a suspend mode in the near future. Bitcoin will emerge from hibernation not until the end of 2024.
According to the cautious outlook, the flagship cryptocurrency is set to trade sluggishly for another couple of years. Jun Du, co-founder and CEO of crypto trading platform Huobi, also predicts that the most popular token will remain stagnant for a few years. The crypto market could revive in late 2024 – early 2025 that would propel a bitcoin’s rally.
The crypto expert explains that bullish and bearish cycles of digital assets are driven by halving. “Following this cycle, it won’t be until end of 2024 to beginning of 2025 that we can welcome next bull market on bitcoin,” Jun Du said. The halving process slashes the rewards that miners gain for verifying transactions. As a result, tokens are generated at a slower speed and miners are able to issue twice fewer new coins.
The halving event is launched once every 4 years. The latest one took place in May 2020. Last year, the bitcoin price topped a historical high of $68,000 per token. The previous halving was conducted in 2016. Bitcoin also rallied to record highs a year later.
Most analysts say that the crypto market is sliding into the crypto winter when digital assets might replay the situation that occurred in 2017-2018. Plumbing the depth of the bear market, bitcoin used to nosedive by 80%.
For the time being, the fair price of the most popular token is 12% lower than its current value. Experts made this conclusion based on bitcoin’s volatility relative to gold.
