CryptoQuant warns investors to exercise caution, noting that the cryptocurrency market is in the “later stages of the current bull cycle.”
CryptoQuant, a data analytics provider, has indicated that the cryptocurrency market is currently in the “later stages of the current bull cycle” and that investors should exercise caution.
In a post published on January 6, Crypto Dan, a CryptoQuant contributor, predicts that the bull market, which commenced in January 2023, will likely reach its cyclical zenith by the first quarter of 2025, or the second quarter at the latest.
“It is reasonable to anticipate that the market is currently in the latter stages of this cycle, given the substantial influx of new investments and the additional funds from existing investors,” the post stated.
According to the post, the percentage of Bitcoin traded for less than one month increased to 36% in the fourth quarter of 2024, a trend similar to previous crypto market peaks.
CryptoQuant predicted that this ratio is likely to continue to increase, potentially increasing by two to four times, before rectifying at the onset of a bear cycle.
“Consequently, it is prudent to maintain an open mind regarding the potential for substantial gains in both Bitcoin and altcoins,” the post stated.
“Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised.”
Differing Perspectives
The cautious stance of CryptoQuant is in stark contrast to the expectations of the majority of analysts, who anticipate that the bull run will persist until the end of 2025, with the possibility of a correction in the fourth quarter.
Steno Research analysts anticipate that 2025 will be the most prosperous year in the history of cryptocurrency, with BTC and Ether both surpassing their previous all-time highs, as well as other “remarkable positive developments.”
VanEck, an asset manager, anticipates that the crypto bull market will reach a “medium-term peak” in the first quarter of 2025, followed by a surge to all-time highs by the end of the year.
In a December blog post authored by Matthew Sigel, director of digital asset research at VanEck, the company projected that Bitcoin (BTC) would be valued at approximately $180,000 at the cycle’s apex, while Ethereum would be trading at over $6,000.
In the same vein, speculators on the betting markets Polymarket and Kalshi anticipate that BTC and ETH will reach record highs in 2025.
Additionally, they anticipate that the United States will approve the creation of a strategic Bitcoin reserve and the approval of numerous new types of crypto exchange-traded funds (ETFs).
