Bitcoin (BTC) and Ethereum (ETH) Poised for Potential Gains in 2025 After Closing Q4 2024 With Notable Gains

Bitcoin (BTC) and Ethereum (ETH) closed Q4 2024 with notable gains, reflecting a mix of market growth and cautious sentiment.

After a tumultuous year in the crypto market, Bitcoin (BTC) and Ether (ETH) closed Q4 2024 with modest gains, reflecting a mix of market growth and cautious sentiment.

BTC rose 48% in Q4, while ETH gained 30%. Both cryptocurrencies closed the quarter with minimal price movements, trading within their monthly ranges.

The market momentum remained steady throughout December, with both BTC and ETH posting positive returns that largely mirrored the broader Q4 performance. According to analysts, stable funding rates and January’s historical price trends, which usually favor positive growth, could contribute to these gains. However, traders remained hesitant to take significant positions as the year-end volatility gradually subsided. Coming off a strong Q4, BTC and ETH are positioned for potential gains in 2025, supported by increased options activity and market optimism.

BTC’s month-to-date returns were relatively flat, indicating a lack of immediate momentum. However, the overall market sentiment remained positive due to the strong Q4 performance. Nonetheless, it may be premature to draw definitive conclusions about the quarter’s outcome.

According to some analyses, BTC could gain additional price support from market dynamics. For instance, Michael Saylor recently shared his Bitcoin purchase tracker, which might signal another round of large-scale BTC purchases. This could further support Bitcoin’s price.

The Impact of Quarter-End Volatility on Market Sentiment Despite the positive Q4 performance, the crypto market is unlikely to see major short-term price swings. Funding remains healthy, and January’s average returns (+3.3%) are similar to December’s (+4.8%).

As a result, the market is expected to remain within its current range, with spot prices remaining relatively stable until at least February. This could be because many traders are waiting to take significant positions until after the holiday season. However, as the year progresses, there could be more opportunities for price growth, especially as January’s slower pace gives way to February’s potential activity.

Options Activity Points to March Optimism Options flows also reflect a cautious market outlook, with front-end volatility drifting lower. The risk-reversal curve shows growing interest in call options for March, driven partly by the significant number of calls (120k-130k) bought last Friday.

This suggests that traders anticipate a potential price increase in the coming months but remain uncertain about the near-term market direction.The information presented in this article is for informational and educational purposes only. It does not constitute financial advice or an offer to buy or sell any cryptocurrency.