Jiang Zhuoer expects the current bull run to end between September 2021 and June 2022. Zhuoer is the CEO of one of the largest Chinese mining pools called BTC.TOP.
From bull to bear
He shares several reasons why he thinks the bitcoin bull market will end in the said period and begin the next bear cycle.
The bitcoin mining pool manager spoke to WuBlockchain about why the market could switch from bull to bear as early as September 2021 or even mid-2022, depending on a number of factors.
The term bull market is used to describe a longer period of growth. Growth in the value of a stock, or in our case of the cryptocurrency market. Bear market is quite the opposite. The meaning of a bear market is when the price or value of bitcoin has been declining for an extended period of time.
Vaccine has an effect
One reason for his prediction is an economic recovery based on the rollout of the Covid vaccine. As the various economies become somewhat normal, Jiang expects interest in investing in cryptocurrency to wane.
Large companies and institutions
In addition, he says that momentum and optimism in the market must continue to be fed by public statements from large companies. Investments like Tesla’s are necessary to keep people interested.
In addition, Jiang mentions that continuing to buy by institutions will keep the bull market alive longer. With this he refers to Grayscale, whose assets under management continue to grow. There are also more and more opportunities for institutions to invest in bitcoin. Price prediction Cryptocurrency Netherlands is popular.
Shortage of microchips good for bitcoin
At the moment, there is a shortage of microchips in the world for several reasons. As a result, the prices of graphics cards, but also of mining devices, have increased significantly. According to Zhuoer, that is good for the price of bitcoin. This ensures that miners are less inclined to sell their bitcoins.
“There is definitely a shortage of equipment right now, because since the coronavirus epidemic, the global supply chain has been disrupted and is now gradually recovering. But the demand for chips has skyrocketed, so now all industries are short of chips, be it bitcoin mining or other industries. ”
The shortage of mining devices can be seen in bitcoin’s hash rate. Since halving in May 2020, bitcoin’s hash rate has increased from about 92 million terahashes per second to its current value of 166 million, an increase of 80%. Bitcoin’s price, on the other hand, rose from $ 9,000 to over $ 60,000, a gain of over 600%.
Correlation of computing power and bitcoin price
Bitcoin’s hash rate has a relatively simple correlation to its price. Barring new technological developments, price increases should be closely mirrored by increases in hash rate. Still, the hash rate has remained relatively stable in recent months.
This means that today’s miners are seeing much higher revenues for individual devices. Below is a graph of the hash price. Hash price is the revenue generated by miners based on computing power supplied. Portugal crypto predictions is popular.
The price of supplied computing power has been declining for years. This is mainly because machines become more efficient. Laptops or graphics cards of game computers are no longer mined (if you still do, respect!), The transition to ASIC is clearly visible below. Since the start of this bull market at the end of 2020, the costs of supplying computing power to the bitcoin network have increased.