Cryptocurrencies across the board saw a sharp drop today following Russia’s invasion of Ukraine. Bitcoin saw prices fall as low as $34,740 at 6:00 a.m. UTC down from $37,043 at 2:00 a.m. UTC. Pretty much every other crypto saw a similar level of decline in the same period of time with the exception of stablecoins and cryptos pegged to the price of gold, which actually rose in value.
Today saw Bitcoin reach its lowest since mid-January and over the last couple of months it had already been seeing a large decline in value, in November, it was sitting above $67,000. An interesting phenomenon with Bitcoin and most cryptos is that they tend to follow stock markets and as of late, markets have been spooked by the prospect of a war, high inflation, increased interest rates, and so on.
For those hoping to buy in low at the current time to benefit from any price increases in the future, it may take a while before the next Bitcoin bull run occurs, at least according to Huobi co-founder Du Jun who told CNBC that he doesn’t see another Bitcoin bull run occurring until the end of 2024.
Du Jun said that the next bull run will coincide with the next halving which is due in 2024. A halving is when the reward for mining Bitcoin is cut in half, this leads to a reduced supply of Bitcoin and causes prices to increase. Only time will tell whether Du Jun’s prediction turns out to be correct.