Edited by: Du YuIn recent days, the Bitcoin index has been continuously declining. Since February 16th, its index has fallen by 17%, with a single day drop of up to 8% on February 17th alone
Edited by: Du Yu
In recent days, the Bitcoin index has been continuously declining. Since February 16th, its index has fallen by 17%, with a single day drop of up to 8% on February 17th alone.
The latest data shows that the Bitcoin index is trading at $36997 per coin, falling below the $37000 mark.
Bitcoin continues to weaken, causing heavy losses for bulls. According to data from Bitcoin Home Network, in the past 24 hours, 105122 people across the network have sold out, and 2.668 billion yuan of funds have been wiped out.
Cryptocurrency analysts say that the Bitcoin bull market is closely related to the "halving" process that occurs every few years. If there are any signs of past price cycles, Bitcoin may not have a bull market until the end of 2024 or early 2025. It is reported that halving blocks refers to the process of reducing the generation of cryptocurrency units per unit of time. Specifically, it refers to the periodic block halving event achieved by reducing the block rewards provided to miners.
It is understood that the last halving occurred in May 2020, and later Bitcoin broke a historical high of $68000 in 2021. A similar situation occurred when the halving occurred in 2016. The following year, Bitcoin reached a new historical high at that time. After these two peaks, Bitcoin prices plummeted. Currently, the price of Bitcoin has dropped by nearly 40% from its historical high in November last year. Due to the fact that Bitcoin is only halved every four years, the next time Bitcoin is halved is in 2024.
Analysts said: "If this cycle continues, we are now in the early stage of a bear market, and we will not usher in the next bull market of bitcoin until the end of 2024 to the beginning of 2025. But the exact time of the next bitcoin halving is also difficult to predict, because there are many other factors that will also affect the market, such as geopolitical issues including war, or the recent COVID-19 will also affect the market."
In a recent report, investment bank Stifel stated that Bitcoin still has a lot of room for decline, and this cryptocurrency is facing three major macro unfavorable factors affecting its price.
Barry Bannister, an analyst at Stifel, pointed out that the factors affecting the price of Bitcoin include the global money supply, the yield of 10-year US treasury bond bonds and the stock risk premium of the S&P 500 index. The Federal Reserve plans to tighten monetary policy in the form of interest rate hikes and balance sheet reductions, which may have a negative impact on the price of the special currency.
He explained, "In 2022, we expect Bitcoin to fluctuate widely, limited to its year-to-date intraday level. If the Federal Reserve continues to normalize policy during a 'standard' two-year tightening cycle, the downside risk of Bitcoin will be greater by 2023
Daily Economic News Comprehensive Bitcoin Home Network, Public News
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