Du Jun, the co-founder of Huobi, one of the world’s largest cryptocurrency exchanges, said the bitcoin bull market is closely related to the “halving” process that occurs every few years. If past price cycles are any indication, Bitcoin may not see a bull run until late 2024 or early 2025. It is reported that block halving refers to reducing the generation of cryptocurrency units per unit time. Specifically, it refers to periodic block halving events that reduce the block reward offered to miners.
It is understood that the last halving occurred in May 2020, after which Bitcoin broke through its all-time high of $68,000 in 2021. A similar thing happened with the halving that happened in 2016. The following year, Bitcoin hit its then all-time high. After these two peaks, the price of Bitcoin plummeted. Currently, bitcoin prices are down nearly 40% from their all-time highs last November. Since Bitcoin is halved only every four years, the next Bitcoin halving will be in 2024.
Du Jun said: “If the current trend of Bitcoin continues, we will not be able to usher in the next bull market for Bitcoin until the end of 2024 to early 2025. But the exact time of the next Bitcoin halving is also difficult to predict. Because many other factors can also affect the market, such as geopolitical issues including war, or the recent COVID-19 outbreak.”
As of February 21, Bitcoin rose 1.63% on the day to $39,015.10.
Bloomberg Intelligence analyst Mike McGlone said Bitcoin is likely to “have the upper hand” this year. Major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) could set new all-time highs in 2022, even as the cryptocurrency market fell to multi-month lows.
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McGlone also predicted that BTC, ether, and U.S.-pegged stable coins would remain dominant in 2022, while some of the top five winners in 2021, such as Binance Coin (BNB) Solana (SOL), may be ranked lower.
According to the analyst, expectations of a Fed rate hike in 2022 could support a “win-win situation” for Bitcoin and the stock market. As a result, Bitcoin may “get the upper hand” in its competition with the stock market this year.
McGlone isn’t the only one who thinks Bitcoin could hit $100,000. In a new note to investors, Zach Pandl, co-head of global FX and emerging markets strategy at Goldman Sachs, said Bitcoin could surpass 50% of the store of value market share within the next five years. Bitcoin price could surge above $100,000 by leveraging gold’s market share.
At the time of writing, Bitcoin is trading at $41,873, down about 11 percent over the past seven days, according to CoinGecko. Bitcoin began to fall after the Federal Reserve’s December FOMC meeting indicated that regulators committed to raising interest rates in 2022, Cointelegraph reported. In addition, due to internet outages caused by local anti-government protests in Kazakhstan, the market has also been shrinking.