Crypto expert and co-founder of cryptocurrency exchange Huobi Jun Du discouraged crypto investors saying that bitcoin might remain in a sleeping mode for another couple of years. From his viewpoint, the crypto market will hardly burst into a sharp rally until late 2024/early 2025. So, crypto assets will be in the grips of bears until then. The main argument in Jun Du’s forecast is based on the concept of halving. Bullish and bearish cycles of digital assets are driven by halving. The process slashes twice the rewards that miners gain for verifying transactions. The halving event occurs roughly every 4 years. Each time, it is accompanied by a sharp rally of the flagship cryptocurrency.
The latest one took place in May 2020. Next year, the bitcoin price spiked to an all-time high of $68,000 per token. Earlier, bitcoin traded with the same dynamic following the halving event in 2016. It also skyrocketed to record highs in December 2017, the expert reminded.
“If this circle continues, we are now at the early stage of a bear market. 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,” the crypto expert commented on the prospects of the market.
“Following this cycle, it won’t be until the end of 2024 to beginning of 2025 that we can welcome the next bull market on bitcoin”, Jun Du concluded. Analysts at Glassnode are on the same page with him. Having assessed on-chain metrics of bitcoin, they acknowledged in January that the number one cryptocurrency had entered the bear market.
