Huobi co-founder Du Jun predicts that the Bitcoin bear market has already begun. He also said that the next bull run will begin in 2024. Du Jun’s take on this is simple, the Bitcoin halving took place in 2020, and we are already almost 2 years into this cycle. This means $69k could very well be the top, and the recent correction is the early stage of a full-fledged bear market.
Huobi co-founder predicts bitcoin bear market
In a recent interview with CBDC, Du Jun discussed the potential of a bear market for Bitcoin. His primary view on this case was the fact that the next halving will be happening in 2024, and that will be the beginning of the next bull run. He also compared this bull run with that of 2016 when the halving happened, and the price reached a new ATH next year. In this case, halving happened in May 2020, and we reached a new ATH in 2021. At present, the price has corrected by nearly 50% and is trading at $36.7k.
All this combined, he concluded that we won’t be seeing a bull run before 2024 or early 2025. The problem, though, is the fact that many indicators don’t suggest that we are in a bear market. At the same time, the market has evolved so much since 2016 that it won’t be a perfect idea to compare these two cycles. There are also a lot of regulatory and geopolitical issues going on globally, which could have been a prime reason for the recent crash.
Many other analysts and Switzerland’s UBS bank have also predicted that we might actually be in a bear market. Recently, even Vitalik Buterin said that crypto winter is here, and this is a great opportunity. All this might be due to the expectations that Feds will soon raise interest rates.
One indicator that suggests otherwise
Bitcoin recently reached over 60% in illiquid supply, which means 60% of Bitcoins haven’t left their wallet in over a year. This means market liquidity is low, and a very small portion of coins are controlling the market price. Long-term hodlers are being patient and are waiting for the price surge. The last time such a high illiquid supply happened was in 2016, and the price increased frantically thereafter.
What are your thoughts as Huobi co-founder predicts the Bitcoin bear market? And assuming that’s right, what do you think will be the bottom? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin inactive supply continues to increase as it reaches 60%
