According to CryptoQuant, the cryptocurrency market has entered the later stages of its current bull cycle, signaling a need for caution among investors. As the bull market, initiated in January 2023, approaches its peak projected for the first or second quarter of 2025, substantial gains in digital assets are still anticipated. CryptoQuant notes an increase in short-term Bitcoin trading, with 36% of Bitcoin being traded within a month in the fourth quarter of 2024, a trend seen in previous market peaks.
The ratio of short-term Bitcoin trading is expected to rise significantly before the market potentially corrects and enters a bear cycle. Despite this, both Bitcoin and altcoins may still offer substantial gains. However, a conservative approach with risk management is advised.
In contrast, other analysts maintain an optimistic view, predicting the bull run may persist until the end of 2025, with potential corrections in the fourth quarter. Steno Research foresees 2025 as a landmark year for cryptocurrency, expecting Bitcoin and Ether to achieve new all-time highs and significant industry developments. Investment firm VanEck anticipates a medium-term peak in the first quarter of 2025, with Bitcoin reaching around $180,000 and Ethereum surpassing $6,000 by year-end.
Additionally, traders on platforms like Polymarket and Kalshi expect record highs in Bitcoin and Ethereum, alongside new types of crypto exchange-traded funds (ETFs) becoming available in the United States and the establishment of a strategic Bitcoin reserve.
