The cryptocurrency market has been on a strong upward trajectory since the beginning of 2023. According to data from CryptoQuant, the crypto bull market is entering its final stage, raising questions about what lies ahead for Bitcoin (BTC) and Ethereum (ETH). With Bitcoin recently surpassing $100,000 and Ethereum passing $3,500, investors are wondering if there is more room for growth or if it is time to be cautious.
Here’s a closer look at what analysts and industry insiders are saying about the future of the crypto market.
CryptoQuant Warns: The End Stage of the Crypto Bull Market Is Here
Data analysis provider CryptoQuant recently published a report suggesting that the crypto bull market is nearing its cyclical peak. The firm warns that Bitcoin’s recent peak at $101,812 resembles patterns seen during previous market peaks.
In a January 6 post, CryptoQuant contributor “Crypto Dan” stated, “With a significant influx of new investment as well as additional funds from existing investors, it is reasonable to expect that the market is now in the latter stages of this cycle. “
According to the report, a critical metric — Bitcoin’s short-term holding percentage — jumped to 36% in the fourth quarter of 2024. Historically, a high percentage of recently purchased Bitcoin indicates investors are becoming more speculative, a sign that the bull market is nearing its end.
While CryptoQuant acknowledges that Bitcoin and altcoins could see further gains in 2025, they urge investors to be cautious. “From a conservative point of view and with risk management in mind, caution is advised,” the post concluded.
Other analysts predict that the Bull Run will continue in 2025
Despite CryptoQuant’s cautious outlook, other analysts believe the crypto bull market has more room to grow.
Asset management firm VanEck expects Bitcoin (BTCUSD) to reach a mid-term peak of $180,000 in early 2025. They also expect Ethereum (ETHUSD) to trade above $6,000 by the end of the year.
According to Matthew Sigel, head of digital asset research at VanEck, “At the peak of the cycle, we expect Bitcoin to be valued at around $180,000, with Ethereum trading above $6,000.”
Steno Research echoes this sentiment, predicting that 2025 could be crypto’s best year yet. They foresee Bitcoin and Ethereum surpassing their previous record highs as more institutional investors enter the market.
Traders on popular prediction platforms Polymarket and Kalshi also expect BTC and ETH to reach new highs in 2025. They believe regulatory developments, such as the approval of new crypto exchange-traded funds (ETFs) and the establishment of a US Bitcoin reserve, could further strengthen the market.
What is driving the crypto bull market?
Several factors have driven the current crypto bull market:
Institutional adoption
More institutional investors are embracing cryptocurrencies, driven by increased clear regulation and new financial products such as ETFs.
Macro economic trends
Global inflation and economic uncertainty have pushed investors towards Bitcoin as a hedge against traditional financial risks.
Halving event
Bitcoin’s next halving event is expected in early 2024, reducing the block reward for miners. Historically, halving events have preceded significant bull runs.
Emerging markets
Cryptocurrencies are becoming more popular in emerging markets, where traditional banking systems are less accessible.
Should investors be cautious or optimistic?
The key question for investors is whether the crypto bull market is closer to its peak or if it still has more upside.
CryptoQuant’s warning suggests we may be approaching the top of the cycle. Their data indicates that speculative behavior is increasing, which often precedes market corrections.
But many analysts remain bullish, pointing to Bitcoin’s strong fundamentals and growing adoption.
VanEck, Steno Research and traders at Polymarket believe that Bitcoin and Ethereum will continue to rise throughout 2025, driven by increased institutional interest and favorable regulatory developments.
The Bottom Line: Is The Crypto Bull Market Ending?
While there are signs that the crypto bull market is entering its later stages, the outlook remains divided. Some analysts are urging caution, warning that speculative behavior could trigger a market correction. Others remain optimistic, predicting new all-time highs for Bitcoin (BTCUSD) and Ethereum (ETHUSD) in 2025.
As always, investors should approach the market with a balanced approach, considering both risks and potential rewards. Whether the bull continues or a correction looms, the crypto market is likely to remain a hot topic throughout 2025.
Featured image: Freepik
