Crypto Market in Late Bull Cycle Stage – Or is Rally Just Beginning?

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According to an analyst’s post on the CryptoQuant blockchain analysis platform, the crypto market cycle seems to be wrapping up. The digital assets market experienced a significant surge during the last quarter of 2024, even though it showed signs of bearishness in late December. However, the upward trend has resumed with Bitcoin reaching its price level of $100,000 once again, indicating the cycle might be nearing completion.

The analyst ‘Crypto Dan’ from CryptoQuant pointed out a recurring pattern showing cycles of increase and decrease, yet with an overall price rise trend, in Bitcoin and the wider cryptocurrency market since January 2023 when the bull market started. As we speak, Bitcoin’s worth surpasses $2 trillion, while the total crypto market capitalization amounts to a staggering $3.58 trillion.

Dan from Crypto has concluded that the market is nearing its final stages of this current cycle due to a substantial increase in new investments, along with additional funds being poured in by existing investors. This surge includes Bitcoin and Ether exchange-traded funds (ETFs), as well as potential debuts of Solana ETFs and other altcoin ETFs in 2025. Notably, the volatility for SOL within the last 24 hours is at 3.2%, its market cap stands at $106.58 billion, and trading volume within the same period amounts to $4.21 billion.

Dan’s analysis indicates that the cryptocurrency market might hit its highest point during either Q1 or Q2 of 2025. This forecast is based on the fact that over 36% of Bitcoins are currently being traded after less than a month, which is higher than in previous cycles although still lower than peak values. However, the analyst predicts this percentage to rapidly increase in the coming months.

According to Dan, it’s predicted that the ratio will significantly increase by 2-4 fold in the upcoming timeframe. This increase could potentially lead the market to become excessively heated, triggering a corrective phase much like what we experienced in recent years.

Even though there’s a more cautious perspective to consider due to risk management, Dan plans to slowly reduce his investments over time.

Currently, the weekly Bitcoin chart shows that the market’s dominant cryptocurrency is following an upward trend in terms of accumulation, indicating no signs of a let-up. At the same time, the Relative Strength Index (RSI) stands at 61.91, suggesting strong medium-term demand for Bitcoin.

Animoca Brands’ Yat Siu Has Different Views

As a crypto investor, I’ve been closely watching the market, and it seems that Yat Siu, co-founder of Animoca Brands, has shared some intriguing insights in a recent Coindesk interview. He forecasts a 120% rise in Bitcoin’s price by 2024, suggesting a significant shift in the market. This shift is expected to pave the way for a massive digital asset adoption wave in 2025, potentially revolutionizing the crypto industry as we know it.

Moreover, he envisions a future where trading with the United States may require using cryptocurrency rails, essentially stablecoins tied to the US dollar. This could mean that other countries might need to adopt similar systems for seamless transactions with the US. It’s an exciting prospect that underscores the growing importance and potential of the crypto space.

In the near future, according to Siu’s forecast, meme coins are expected to launch their own layer-1 (L1) and layer-2 (L2) solutions. Meanwhile, non-fungible tokens (NFTs) will integrate into a broader ecosystem, moving beyond being standalone projects. By 2025, Siu envisions that meme coins and NFT projects will primarily focus on creating games, applications, and user experiences rather than just serving as speculative assets.

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2025-01-06 23:33