How long until the bull market arrives? Let's listen to Grayscale's forecast report!
The crypto bull market is currently in the middle stage.
Grayscale points out through in-depth analysis of multiple data indicators that Bitcoin's cyclical indicators have not yet reached historical highs. The report views Bitcoin and other cryptocurrencies as digital commodities, whose price fluctuations follow certain momentum laws. Therefore, for investors, closely monitoring on-chain data and the market positioning of altcoins is crucial. According to Grayscale's assessment, the current market indicators align with the mid-term of the cryptocurrency cycle; while the MVRV ratio and others have significantly rebounded, they have not yet reached historical peaks. As long as the market fundamentals remain robust, such as the popularity of applications and a favorable macroeconomic environment, the crypto bull market is expected to continue until 2025 or even beyond.
Bitcoin's dominance is declining, and altcoins are rising.
Grayscale emphasizes that the cryptocurrency market is not solely dominated by Bitcoin; the performance of other assets is also valuable for judging the market cycle. Especially in the two years following the start of a bull market, Bitcoin's dominance often peaks and then gradually declines, while the market share of altcoins begins to rise. This pattern has been validated in the past two market cycles. Therefore, Grayscale suggests that investors should pay attention to the relative performance between Bitcoin and other crypto assets, as well as overall market indicators, to grasp the cyclical changes in market valuation.
This bull market exhibits new characteristics.
Compared to previous cycles, the current crypto bull market presents many differences. Among them, the approval of spot Bitcoin and Ethereum exchange-traded products in the U.S. market has brought in a net capital inflow of $36.7 billion and accelerated the incorporation of these digital assets into traditional investment portfolios. This change has greatly enhanced the popularity and recognition of crypto assets. Furthermore, the regulatory environment after the U.S. elections may be more transparent, helping to establish the long-term position of digital assets in the world's largest economy. These new changes indicate that the crypto market may have entered a brand new stage of development, and investors need to pay attention to these long-term impacts to more comprehensively assess market trends.
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