Since the advent of the technology market, the highest price of bitcoin has risen in the last year, at one stage the price of each crypto crash bitcoin exceeded 68,000 thousand dollars. But market analysts say that investors may have to wait until 2024 for such an upward trend in the price of crypto crash again.
Du Jun, head of Huobi, one of the largest cryptocurrency exchanges, said the Bitcoin market could see a “bull market” again in late 2024 or early 2025. The rise and fall of bitcoin prices in the cryptocurrency market are influenced by a process called ‘huffing’ and it happens from time to time, he said.
To stock market stakeholders, the term “bull market” means that in a market where prices continue to rise, investors are motivated to buy more shares. The opposite situation is called ‘Bare Market’ or ‘Bear Market’.
On the other hand, the miners of the Bitcoin network are more involved with the Huffing process. Miners verify organized transactions on the Bitcoin network by solving complex mathematical problems on specialized and powerful computers; Get Bitcoin as a reward.
And in the original code of Bitcoin, the word ‘Huffing’ is written. This process halves the bitcoin that miners receive as a reward for verifying transactions on the cryptocurrency network. This Huffing incident happened almost every four years.
The last time Huffing was on the Bitcoin network was in May 2020. And in 2021, Bitcoin reached the highest value milestone. Each bitcoin has sold for more than 68,000. The previous ‘Huffing’ incident happened in 2016. The next year, the price of Bitcoin skyrocketed, according to US publication CNBC.
However, Du Jun, co-founder of Huobi, says: “It’s very difficult to make accurate predictions because there are many other factors that could affect the market – such as geopolitical issues such as war or the recent Covid epidemic.”
Although the price of Bitcoin increased in 2016 and 2021, the price of cryptocurrency started falling twice in a short time. At present, the price of Bitcoin is stable at 40 percent, the highest in its history, according to CNBC. The next ‘Huffing’ event is scheduled for 2024.
“If this cycle continues, we are at the beginning of the Bare Market,” said Du Jun.
“Following this cycle, we can expect a bitcoin bull market in late 2024 or early 2025.”
Many investors in the sector have been alarmed by the declining value of cryptocurrencies in recent months, CNBC reported.