Analysts expect
the price of the cryptocurrency Bitcoin to plummet for a long time and start
skyrocketing again in 2024. The founder of Huobi, one of the largest crypto
exchanges in the world, Du Jun, mentioned that Bitcoin will not see bullish
(the upward price trend continues to ravage) until the end of 2024 or the
beginning of 2025 if the past price cycle is still an indication.
This incident is
related to miners on the Bitcoin network running special computers to solve
complex mathematical puzzles. This is done to validate transactions on the
Bitcoin network. Miners are rewarded in Bitcoin as a result.
The halving goes
into the Bitcoin base code and cuts in half the rewards miners get for
validating transactions on the cryptocurrency network. It happens approximately
once every four years.
The last halving
took place in May 2020 and in 2021, Bitcoin reached an all-time high above
US$68,000. A similar incident occurred when half occurred in 2016. The
following year, Bitcoin reached a record high at that time.
"It's very
difficult to predict exactly 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 shortly fell. Right now, Bitcoin is already down nearly 40%
from its record high since last November, though it's 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 will not be until the end of 2024 until the beginning of 2025
that we can welcome the next bullish market on Bitcoin." he said.
14 comments