With the strengthening of capital inflows, Bitcoin returned to above the $100,000 price line last night. However, according to the latest CryptoQuant report, the analysis team stated that the Bitcoin bull market cycle may end in the first or second quarter of 2025. This round of bull market started after the FTX exchange collapse in January 2023, with Bitcoin rapidly rebounding from below $20,000, attracting widespread attention from the financial sector. The bull market has now lasted for two years, and the market is in the later stage. According to past cyclical norms, the cycle is almost at its end.
The trading ratio of Bitcoin within a month is 36%, lower than past peaks. This data is expected to rise before the peak of the bull market, which is a typical indicator of capital overflow, indicating that currently, capital is flowing out of Bitcoin. Many in the industry hold an optimistic view on the growth of crypto assets this year.
One of the main reasons is that Trump is about to take office, and the new government is expected to promote Bitcoin adoption and the use of Bitcoin as a strategic reserve for the United States. Analysts predict that the price of Bitcoin may experience 2 to 4 rapid surges, rather than a single explosive increase, and then the market may fall into a bear market due to overheating. Analysts suggest that the community should pay attention to the recent significant price fluctuations of Bitcoin and other cryptocurrencies and prepare for a potential bear market.
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"MICA Daily｜Bitcoin Returns to $100,000! Analysts Warn: Bull Market Cycle is About to Peak" This article was first published on (CoinDesk).
