According to data analytics provider CryptoQuant, we are in the later phases of the ongoing bullish trend in the cryptocurrency market, so potential investors should exercise caution.
In a blog post on January 6th, CryptoDan, who contributes to CryptoQuant, predicted that the current bull market, which started in January 2023, is expected to hit its peak during the first or second quarter of 2025 at the latest.
Given the significant increase in fresh investments along with further contributions from current investors, it’s likely we’re nearing the later phases of this investment cycle,” the text stated.
Towards the end of 2024, about 36% of all Bitcoin trades were for coins that had been held for less than a month, similar to patterns seen at previous high points in the crypto market, as suggested by the post.
According to CryptoQuant’s analysis, this ratio could continue growing, with an estimated increase that ranges from doubling to quadrupling, prior to adjusting at the beginning of a downturn or bear market.
In other words, it’s suggested that we should continue to anticipate potential significant increases in Bitcoin and other cryptocurrencies.
“Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised.”
Contrasting views
According to CryptoQuant, their more reserved outlook clashes with the general consensus among analysts, who anticipate that the bull market will persist until late 2025, possibly experiencing a correction towards the end of the year.
Experts at Steno Research predict that the year 2025 will be a record-breaking one for cryptocurrencies. It’s anticipated that Bitcoin (BTC) and Ethereum (ETH) will surpass their highest historical values, along with other significant positive advancements possibly unfolding.
According to asset manager VanEck, we might witness a “mid-term peak” in the cryptocurrency market during the first three months of 2025. However, they predict that it will subsequently reach new record highs by the close of the same year.
According to a blog post written by Matthew Sigel, the head of digital asset research at VanEck, they estimate that Bitcoin (BTC) could reach approximately $180,000 and Ethereum might trade above $6,000 at the peak of its cycle.
In much the same way, traders on betting platforms such as Polymarket and Kalshi predict that BTC and ETH will reach all-time highs by 2025. Additionally, they foresee regulatory approval for multiple types of crypto Exchange-Traded Funds (ETFs) in the US and the creation of a strategic Bitcoin reserve by the government.
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2025-01-06 19:44