YEREVAN (CoinChapter.com) — The cryptocurrency market is showing signs of entering the later stages of its current bull cycle, according to CryptoQuant. Analysts suggest caution as key indicators point to a potential cyclical peak by early 2025.
Bull Market Timing: Peak Expected by Q1 or Q2 2025
The bull market, which began in Jan. 2023, is expected to hit its peak between the first and second quarters of 2025, according to Crypto Dan, a contributor at CryptoQuant. The analysis highlights increased investment activity from both new and existing participants, suggesting the market is nearing the end of its cycle.
“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 latter stages of this cycle,”
noted the post from Jan. 6.
Bitcoin Realized Cap UTXO Analysis. Source: CryptoQuantweb CryptoQuant: Bitcoin Metrics Show Market Trends
Data from CryptoQuant reveals a spike in short-term Bitcoin holding patterns. In the fourth quarter of 2024, the percentage of Bitcoin (BTC) traded for less than one month rose to 36%, echoing patterns observed in previous bull market peaks.
The report indicates this ratio could continue rising, potentially doubling or quadrupling, before the market corrects during the transition to a bear cycle. CryptoQuant stresses the importance of risk management in such an environment.
“Expectations for substantial gains in both Bitcoin and altcoins should still be kept open,”
the post added.
“Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised.”
Diverging Views on Market Trajectory
While CryptoQuant signals caution, other analysts have offered more optimistic forecasts. VanEck projects Bitcoin reaching $180,000 and Ethereum surpassing $6,000 by the end of 2025. Matthew Sigel, VanEck’s head of digital asset research, expects a medium-term peak in Q1 2025, followed by all-time highs later in the year.
Bitcoin Realized Cap UTXO Analysis. Source: VanEck
Betting platforms Polymarket and Kalshi predict new record highs for Bitcoin and Ethereum in 2025. They also expect regulatory developments, including approvals for new crypto ETFs and a strategic Bitcoin reserve in the United States.
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