There are a huge variety of factors that can affect the market. Geopolitical issues, war and the coronavirus pandemic are no exception. The founder of the largest cryptocurrency exchange Huobi is fully convinced of this, CNBC reports.
Du Jun, owner of Huobi, believes that we can not expect a rise in bitcoin prices by 2025. The expert said that the so-called. The “bullish” phases of bitcoin are directly related to a process called “halving”.
This is something that the cryptocurrency market faces every four years. Halving is a phenomenon in which there is a 50% reduction in extraction fees and confirmation of transactions.
Dew noted that after halving in late spring 2020, the price of bitcoin rose to a maximum of more than $ 68,000.
The same situation was observed in 2016. Only a year after the halving, the price of cryptocurrency rose several times. At the same time, the expert emphasizes that after each such peak there has been a serious decline.
Cryptocurrency has now depreciated by 40% from a record high, reached again last November. The expert believes that the next fall, provoked by Halving, will begin in 2024.
If the established cycle continues, it can be said that there is now an early stage in the “bear” market. It is impossible to say exactly what will happen next, because there are too many factors that can change everything at one time.
For example, if war breaks out, unexpected geopolitical problems will arise or the coronavirus pandemic will intensify.
Doo points out that as the price of cryptocurrency has fallen sharply recently, many market participants have begun to fear that “cryptozyme” or too much “bearish” activity could lead to very unexpected and even somewhat catastrophic consequences.
Translation and editing: BLITZ
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