The CEO of the Huobi cryptocurrency platform declares forecasts based on the history of dynamic indicators of the bitcoin currency and says that a “bullish trend” will not appear until 2025.
Giving an interview to CNBC, Du Jun explained that the bitcoin exchange rate is characterized by dependence on the half-hearted reward activity of miners. This halving is carried out once every 4 years. The 3rd halving took place at the end of spring 2020. November 2021 was characterized by bitcoin reaching its maximum (69 thousand dollars). A similar take-off took place after the halving of 2016 and was characterized by the rise of bitcoin over 20 thousand dollars. 2018 was marked by the advent of the cryptocurrency winter after the maximum take-off, which stretched for a long time.
The CEO of Huobi states that the current state of the cryptocurrency operations market is moving along a similar development. The current price of bitcoin is approximately $ 39 thousand. This is forty percent lower than the record November high. He also noticed that there is some difficulty in accurately predicting the state of this cryptocurrency, since various problems may dominate the market, including in geopolitics, or the development of a pandemic will affect the market.
“Both peaks were characterized by the subsequent fall of the bitcoin currency. The next halving will take place in 2024. Following this cycle, we can talk about the initial level of the “bear market” situation. Thus, we expect the appearance of a “bullish trend” only in December 2024 or in January 2025″ – such forecasts were given by Du Jun.
A large number of researchers are talking about the likely coming of the next “cryptocurrency winter”. Nevertheless, Benjamin Cowan states that the level of the bitcoin currency is more dependent on the dynamic performance of stock markets. That is, if the NASDAQ/S&P 500 indicators are characterized by an increase over a long time, then the bitcoin currency will show a “bullish trend”. DappRadar analysts are afraid that the arrival of a long cryptocurrency winter will lead to the “screening out” of 80 percent of “DeFi” programs that have not yet felt the “winter effect”. In this case, the market will be characterized by the presence of only the largest and most stable projects.