Bitcoin Price Prediction: Bull Market Won't Happen Until 2024, Analyst Says

KEY POINTS

Halving is when the reward for mining Bitcoin is cut in half
Halving is aimed at capping the total number of Bitcoins in the market at 21 million
Bitcoin is currently at the early stage of the bear market, says Huobi co-founder

Bitcoin is unlikely to see a bull market until late 2024 as it enters a bear market, according to the predictions of the co-founder of one of the world’s largest cryptocurrency exchanges.

Du Jun, the co-founder of Huobi, said Bitcoin prices are closely tied to a process called “halving.” The term refers to when the reward for mining Bitcoin is cut in half. Halving is part of a system aimed at capping the total number of Bitcoins in the market at approximately 21 million.

The last halving occurred in May 2020. A year later, the price of the cryptocurrency rose above $68,000. However, following the peaks, Bitcoin tumbled. Based on the trend, Du said Bitcoin is currently at the early stage of the bear market and will likely enter the next bull market after the 2024 halving.

"It is really hard to predict exactly because there are so many other factors which can affect the market as well — such as geopolitical issues including war, or recent Covid, also affect the market," he said, as translated by CNBC.

"Following this cycle, it won't be until the end of 2024 to the beginning of 2025 that we can welcome the next bull market on Bitcoin."

As of Monday 8.55 p.m. ET, the cryptocurrency had a price of $37,233.80. The current price has fallen dramatically since it set a record in November.

The recent price drop has led some market participants and investors to expect another “Bitcoin winter.” During this time, the prices of the cryptocurrency fall and do not see a recovery for a year or more.

The last time a “Bitcoin winter” occurred was in late 2017 and the middle of 2019. At the time, Bitcoin prices fell from $20,000 to below $4,000, according to The Business Insider.

Other cryptocurrencies have also seen a dramatic fall in prices, causing the entire crypto market to shed more than $1 trillion in value since November. Ether fell to $2,590 Monday, less than half its value since it peaked in November. Solana dropped to $83.44, which was 65% lower than its value during its peak.