A top executive at crypto exchange platform Huobi says that top digital asset Bitcoin (BTC) might not see bullish action for years.
In a new interview with CNBC, Huobi co-founder Du Jun says that the crypto markets operate in four-year cycles, and that bear markets tend to follow bull markets that are caused by Bitcoin halving.
According to Jun, Bitcoin’s historical four-year pattern suggests we are in the early stages of an elongated bear market.
“In crypto, there is a cycle or a curse every four years, and this echoes with halving in Bitcoin. In 2021, [Bitcoin halved], and in 2013, there was a bull market when the value rose from $20 to almost $2,000 in 2013. It was a bear market after that.
Then 2016 halving led to the second bull market in October 2017, when Bitcoin was valued at almost $20,000. In 2020, the third halving led to the third bear market in 2021. If this cycle continues, we are now at the early stage of a bear market.”
Halving is when the mining rewards for a crypto asset are cut in half, impacting its supply. Halving generally occurs every four years.
According to Jun, the pattern of this cycle implies that Bitcoin won’t be in a bull market until late 2024 or early 2025.
“Following this cycle, it will be until [the] end of 2024 to the beginning of 2025 that we can welcome the next bull market on Bitcoin.”
Bitcoin is exchanging hands at $38,871 at time of writing, a 12.5% decrease from its seven-day high of $44,574.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Dotted Yeti/Chuenmanuse