The crypto market, like any other market, is constantly subject to speculation, mostly about its price and the future fortunes or loss of each security. The market has also seen a lot of ups and downs as it has seen several bear runs that have seen the industry being affected across the board with many declaring is the end of cryptocurrency and claiming that it will never recover. On the other hand, the crypto market has seen many bull runs and has seen price is double overnight and this increase in price made millionaires out of some of the earliest crypto investors and those within the industry are constantly looking for what will trigger the next significant bull run.
According to Jihan Wu, who is the CEO of Bitmain, the next bitcoin halving will not likely trigger a bull run. Wu made these comments during the World Digital Mining Summit which is being held in Frankfurt and stated that of a while the next bull run will not likely take place due to the halvening, it will increase the value of bitcoin on the long term.
To Run or Not to Run?
Wu clarified that his statements do not mean that he is generally pessimistic about the crypto market but instead stated that bull runs tend to follow a certain cycle and that the next bull run based on the cycle might not take place directly after the halving. He did, however, encourage many investors to invest in mining software and hardware.
“There are many uncertainties, but now is a good time to invest in crypto mining. If I were a miner, I would not stop mining but continuing to invest in mining equipment. We are currently in a short-term correction of price. Having a long-term perspective is significant. If bitcoin’s price remains unchanged after halving, the efficiency of existing equipment must be improved to balance efficiency and computing power,” he said.
While all financial markets are often subject to speculation, the crypto market is particularly interesting because it is an emerging market. Many of those theories based on previous market behavior and often state that the crypto price will rise above a certain amount or fall below a certain amount at certain times, some of which have gone on to be fairly accurate.