According to the data analytics provider CryptoQuant, the cryptocurrency market is currently in the “later stages” of its ongoing bull cycle, and investors are advised to exercise caution. This bull market, which kicked off in January 2023, is anticipated to hit its cyclic peak between the first and second quarter of 2025. A contributor from CryptoQuant, known as Crypto Dan, highlighted that a significant influx of new and existing investments suggests that the market is nearing the end stage of this cycle.
By the fourth quarter of 2024, the percentage of Bitcoin traded for less than a month had surged to 36%, a pattern reminiscent of previous market peaks. This ratio is expected to continue rising, potentially two to fourfold, before the onset of a bear cycle. Despite this, CryptoQuant suggests that opportunities for substantial gains in Bitcoin and other cryptocurrencies remain, although it advises maintaining a conservative approach with robust risk management.
However, CryptoQuant’s cautious outlook contrasts with the views of other analysts who predict the bull run will persist through the end of 2025. For instance, Steno Research expects 2025 to be a standout year for crypto, with Bitcoin and Ethereum breaking previous all-time highs. Asset manager VanEck anticipates the bull market to reach a medium-term peak in early 2025, with further peaks later in the year. They project Bitcoin could reach $180,000, while Ethereum may surpass $6,000.
Similarly, traders on platforms like Polymarket and Kalshi anticipate that Bitcoin and Ether will achieve record highs in 2025. They also expect the U.S. to approve new cryptocurrency exchange-traded funds (ETFs) and consider creating a strategic Bitcoin reserve.
