It's difficult to predict the future, but as investors, we need to have a plan, right? Just like making other plans, this investment plan must be flexibly adjusted with changes in the market—after all, the market is a capricious entity.
Today, let's take a look at the market predictions and response plans for 2025 by well-known analyst and trader 0xKyle.
Looking back at 2024.
Let's get straight to the point! First, we need to discuss his macro expectations and market scenario assumptions.
Market trends in 2024 are roughly as follows:
On January 10, Bitcoin ETF launched;
BTC hits a new high, briefly triggering altcoin season;
Entering the oscillation period of Q2 and Q3, BTC hovers between $50,000 and $60,000;
After election day, BTC hits a new high, rising all the way to $100,000;
Currently, it has not effectively broken through the $100,000 mark and has been hovering above $90,000.
The current market state is roughly Bitcoin hovering between $90,000 and $100,000, while the performance of altcoins seems a bit volatile.
What happens next? When will the spring of altcoins arrive?
Four possibilities for the crypto market in 2025.
Assumption One: Bitcoin and altcoins rise together.
If Bitcoin continues to be strong, altcoins will also rise. Imagine the whole market is in a 'rise, rise, rise' rhythm! The kind of exuberance from the last two months of 2024 may reappear.
Probability: 30% - 40%
Strategy: Buy during the current 'panic'! Now is a great time to scoop up strong altcoins.
Assumption Two: Bitcoin rises, altcoins rise less.
This is the most common script of 2024: Bitcoin continues to rise, while other altcoins seem to be 'just tagging along'. The performance of altcoins may be somewhat shaky, but overall, Bitcoin leads the market.
Probability: 50% - 60%
Strategy: Continue to buy in the 'panic' market, but select some niche, high-potential altcoins, don't blindly follow trends, and look for the next potential rising coin.
Assumption Three: Bitcoin rises, altcoins fall.
This is a bit dramatic: Bitcoin is rising, but altcoins may face a 'death valley'. If that's the case, it might be the peak for altcoins.
Probability: 20% - 30%
Strategy: Sell all altcoins. Although there may be some small losses in the short term, if altcoins do not rise, it is time to liquidate.
Assumption Four: Bitcoin and altcoins fall together.
This is the situation I least want to see, but it is also possible. The overall market atmosphere is pessimistic, and the market may enter a correction phase.
Probability: 10% - 20%
Strategy: Stay calm and don't panic. The market will always have fluctuations; remember not to bet everything, and have a backup plan.
The trend of the crypto market in 2025 is not just a technical issue. Changes in the macroeconomic and political environment will also profoundly affect the market.
First of all, Bitcoin's next new high may not be as slow as in 2024. Although in 2024, BTC faced challenges from the regulatory environment, and after the ETF launch, the traditional financial system (TradFi) was still trying to promote Bitcoin, with the increasing attention to digital assets, the future rise will be more rapid.
Especially with the new U.S. government taking office, Trump's discussion of Bitcoin's strategic reserve (SBR) has already made Bitcoin part of the political agenda. This intertwining of politics and finance greatly increases Bitcoin's appeal, and the recognition of ordinary investors will also change significantly.
The change in this macro background is very important; it provides momentum for Bitcoin's further rise. As more mainstream countries pay attention to Bitcoin and its strategic value, Bitcoin's market acceptance may increase significantly.
Altcoins: Still full of opportunities but need to be cautious.
For altcoins, I still have high hopes for their performance in 2025. But I want to be clear that the altcoin market is more volatile, so how to determine 'when to attack and when to defend' is critical.
In 2025, the volatility of the on-chain market may be more intense than Bitcoin. During the 'tide going out', the on-chain market is likely to experience a -70% adjustment, so my strategy is to sell at the peak of altcoin market attention and reinvest in top altcoins (top 20), then slowly build a position.
Nevertheless, I don't believe altcoins have peaked. Bitcoin's rise will support altcoins, but altcoins won't simply follow in Bitcoin's footsteps.
In other words, the performance of altcoins will depend on changes in market sentiment and hot narratives, and these factors cannot be simply predicted.
The crypto market in 2025 could be an opportunity or a challenge. In any case, staying calm and keeping up with market changes is key to winning this game!