According to the data analysis provider CryptoQuant, the cryptocurrency market is now in the "final phases of the current bull cycle" and "investors are advised to exercise caution."

The bull market, which began in January 2023, is likely to reach its cyclical peak in the first quarter of 2025, or the second quarter at the latest, said Crypto Dan, a contributor to CryptoQuant, in a post on January 6.

"With a substantial influx of new investments, as well as additional funds from existing investors, it is reasonable to expect that the market is now in the final stages of this cycle," the post stated.

In the fourth quarter of 2024, the percentage of Bitcoin

BTC

tickers down

€98,092

traded for less than a month surged to 36%, a pattern that resembles previous highs in the cryptocurrency market, according to the post.

This ratio is likely to continue increasing, potentially by two to four times before correcting at the start of a bear cycle, said CryptoQuant.

"Therefore, expectations for substantial gains in both Bitcoin and altcoins should still be kept open," the post stated.

"However, from a conservative standpoint and with risk management in mind, caution is advised."