Crypto Market Nears End of Bull Cycle, CryptoQuant Warns of Volatility

2025-01-07 economy

Global, Tuesday, 7 January 2025.
CryptoQuant analysts indicate the crypto bull cycle is ending soon, advising caution due to potential volatility, though opportunities for significant gains remain possible.

Market Indicators Point to Cycle Peak

According to CryptoQuant analysts, the cryptocurrency bull market that began in January 2023 is expected to reach its peak between the first and second quarters of 2025 [1][4]. With Bitcoin currently trading at $99,234 [6], key market indicators suggest we’re entering the final stages of this expansionary phase. A notable metric showing this trend is that 36% of Bitcoin’s trading volume occurs within monthly timeframes [1][5], though this figure is expected to increase by two to four times before the cycle concludes [4].

Expert Predictions and Price Targets

Industry analysts have provided varying but optimistic price targets for the cycle peak. VanEck projects Bitcoin could reach $180,000, with Ethereum potentially exceeding $6,000 [1]. Meanwhile, John Glover, Ledn’s CIO, suggests a more nuanced short-term trajectory, predicting a potential correction to $89,000 before a rebound above $125,000 later in Q1 2025 [6]. The upcoming Federal Open Market Committee (FOMC) meeting scheduled for January 30, 2025, could significantly impact these price movements [6].

Structural Market Changes

Yat Siu, co-founder of Animoca, predicts 2025 will mark crypto’s mainstream adoption, driven by increased institutional involvement and evolving market infrastructure [5]. The market has already shown remarkable growth, with the total cryptocurrency market capitalization reaching $3.58 trillion [5]. This expansion has been supported by the introduction of new financial products and increased institutional investment [1][5].

Risk Management Considerations

While substantial gains are still possible, CryptoQuant advises a cautious approach to risk management [1]. The market is expected to experience multiple sharp price increases rather than a single spike, potentially leading to significant overheating followed by a bear cycle [4]. Technical indicators support this cautious outlook, with Bitcoin’s Relative Strength Index (RSI) at 61.91 [5] and the Average Directional Index (ADX) at 18.69, indicating a currently weak trend that requires increased trading volume for sustained upward momentum [6].

Sources

crypto market bull cycle