According to Du Jun, co-founder of cryptocurrency exchange Huobi, bitcoin can expect a bull market no sooner than late 2024 or early 2025, CNBC writes.

He said the bitcoin bull market is closely linked to a process called halving, which happens every few years. And the next such process will occur in 2024, when he believes another bitcoin rally could begin. “Halving” is the process of reducing the rate of generation of new units of cryptocurrency. The fact is that the miners of this cryptocurrency work on powerful computers, solving complex mathematical problems to confirm transactions in the BTC network, as a result of which they are rewarded in bitcoins. “Halving” is embedded in the underlying bitcoin code and halves the reward that miners receive for confirming transactions on the network. This process happens about every 4 years.

Bitcoin’s last halving occurred in May 2020, and in 2021 it surpassed an all-time high above $68,000. A similar process took place in 2016. And the very next year bitcoin reached a record high.

The next “halving” is scheduled for 2024.

After both peaks, bitcoin fell. The cryptocurrency is currently trading nearly 40% below its record high last November.

“If this circle continues, we are already in the early stages of a bear market,” Du said.

He said it’s difficult to predict the exact date because there are many other factors that could also affect the market – such as geopolitical issues, including war, or the recent outbreak of the Omicron strain of coronavirus.

It will likely not happen until late 2024 or early 2025.