Analysts Divided as Crypto Market Nears Potential Cycle Peak in 2025
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Bitcoin’s supply activity and institutional adoption, on the other hand, suggests that there is still growing demand for crypto. Companies like MicroStrategy and CleanSpark also recently expanded their Bitcoin holdings, with CleanSpark even surpassing Tesla as the fifth-largest corporate Bitcoin holder. Meanwhile, JPMorgan recently pointed out Bitcoin’s growing role as a hedge against inflation, and predictions for Bitcoin and Ethereum reaching record highs are boosted by the optimism around regulatory advancements and corporate treasury strategies. Market Tops in Sight and Experts Weigh In The cryptocurrency market seems to be entering the latter stages of its current bull cycle, according to CryptoQuant. In a recent post by Crypto Dan, it was suggested that the bull market, which started in January of 2023, could reach its cyclical peak as early as the first quarter of 2025, or by the second quarter at the latest. The post also pointed to a big influx of new investments and additional contributions from existing investors as evidence of the cycle nearing its climax. Crypto Dan post (Source: CryptoQuant) In the final quarter of 2024, Bitcoin saw 36% of its supply traded for less than a month, which is a pattern that is often associated with market tops in previous cycles. CryptoQuant noted that this ratio might increase two to four times before a corrective bear cycle begins. While there is still potential for gains in Bitcoin and altcoins, the firm urged investors to approach the market with caution and prioritize risk management. This cautious outlook is very different from the predictions of other analysts who expect the bull market to extend through the end of 2025. Steno Research projects 2025 to be a record-breaking year for the crypto market, with Bitcoin and Ethereum expected to surpass all-time highs alongside other major advancements. Similarly, VanEck forecasts a medium-term peak…
Filed under: News - @ January 7, 2025 5:23 am