Why This Bull Cycle Will Be Different
I've said it before and I'll say it again. This bull cycle is going to be unlike any we've seen before! Each category or coin will experience its own unique rally and even though there will certainly be a crypto rally, its momentum will be lower. Here’s how past cycles compare:
- 2017-2018 Bull Run: Average coins saw 200x to 1000x gains, even established ones like XRP, XLM, $ETH and $LTC .
- 2021 Bull Run: The average coin delivered a more modest return of 10x to 20x despite unprecedented quantitative easing.
- 2024-2025 Bull Run: I predict average coins will achieve just 3x to 5x gains.
Why Gains Will Be Smaller This Time
1. Increased Number of Coins: The market has expanded from 1,500 altcoins in 2018 to 10,500 today, negatively diluting growth potential.
2. Macroeconomic Pressures: The Federal Reserve is going to maintain high interest rates and is unlikely to pursue monetary expansion in 2025. A potential recession and stagflation risk adds further uncertainty as well.
3. Market Dynamics Have Shifted: Price movements are driven more by liquidations rather than organic growth.
Expectations for This Bull Cycle
Most coins have already achieved 1.5x to 2x gains from their bottoms. I foresee the following:
- 3x potential from current values for most coins as we enter the new year.
- A long liquidation phase, a mini rally and then a shift to a bear market.
Note: Rare exceptions like Phala coin may still achieve 5x gains once in a while, but they’re hard to identify and whales/exchanges can limit their growth if you invest too much to obscure coins.
What You Should Do
1. Take Profits Gradually: Sell incrementally and avoid keeping your principal in coins that have made 2x to 3x gains.
2. Avoid Risky Moves: Don’t invest money you can’t afford to lose or borrow funds for crypto. Gambling might yield a win once, but it eventually leads to losses.
3. Stay Cautious with Overhyped Coins: Avoid coins that have already surged, they might crash.
4. Don’t rely on crypto influencers but only you!