Bitcoin (BTC) May Undergo a Period of Correction or Sideways Movement in the Coming Year

CryptoQuant CEO Ki Young Ju announced that Bitcoin’s bull cycle had ended and predicted that the price would decline or move sideways for the next 6 to 12 months.

CryptoQuant CEO Predicts Bitcoin Correction or Sideways Movement for 6-12 Months

The cryptocurrency market has been buzzing with anticipation as the year progresses, and recent predictions from a prominent crypto analyst have sparked discussion and speculation among investors.

CryptoQuant CEO Ki Young Ju has hinted at the possibility of Bitcoin undergoing a period of correction or sideways movement in the coming year.

Earlier, the CEO had stated that "it’s too early to call it a bear market," a perspective that was evident in the CryptoQuant chart.

The chart showcases Bitcoin’s price (black line) going through several strong volatility cycles:

The chart highlights two key color zones representing capital flow trends in the market:

• Green Zone: Periods of high ‘Apparent Demand,’ indicating strong buying pressure and potential price increases.

• Red Zone: Phases of low ‘Apparent Demand,’ signaling weak buying pressure and potential price decreases.

The lower window of the chart displays the ‘Apparent Demand’ index by CryptoQuant, which aims to measure market demand.

The upper window shows the percentage change in Bitcoin price over different time periods: 1-week, 1-month, 3-month, and 1-year.

The CEO further explained his reasoning for this prediction, citing four main factors that have influenced his outlook on Bitcoin’s near-term price movements.

1) PnL Index Cyclical Signals

The PnL Index, a metric that measures the profitability or unprofitability of short-term Bitcoin holders, is a valuable indicator of market trends.

The chart shows that Bitcoin follows a clear cycle of growth and correction, as reflected in the following signals:

• Green signals: Periods of high PnL, indicating strong buying pressure and potential for price increases.

• But as the PnL decreases, it acts as a barrier to further price gains.

• Red signals: Phases of low or negative PnL, suggesting weak buying pressure and potential for price decreases or corrections.

The lower window of the chart displays the PnL Index by CryptoQuant.

The upper window shows Bitcoin's price trends over different time periods: 1-week, 1-month, 3-month, and 1-year.

2) On-chain metrics signaling a bear market:

Several on-chain indicators are flashing warning signs of a potential bear market.

• MVRV ratio: Measures the ratio of Bitcoin's market capitalization to realized capitalization, indicating market value overbought or oversold conditions.

• SOPR: (Spent Output Profit Ratio) measures the average profit or loss of Bitcoin units as they are spent.

• NUPL: (Net Unpaid Loss Payoff) shows the amount of realized losses to be paid to continue the chain reaction.

These indicators have appeared in past bear markets, suggesting that Bitcoin may be entering a phase of increased risk or potential market adjustment.

3) New liquidity drying up:

Institutional capital inflows and Bitcoin ETFs have declined, leading to a lack of liquidity to support BTC prices. For example, BlackRock’s Bitcoin ETF has recorded three consecutive weeks of outflows.

4) Whales selling BTC at lower prices:

Large Bitcoin holders (Whales) are offloading their BTC at lower price levels, adding downward pressure to the market.

Based on these factors, Bitcoin BTC is facing strong downward pressure and could be entering a bear market. However, the cryptocurrency market is inherently volatile and difficult to predict. Investors should remain cautious, closely monitor key market indicators, and stay informed to make sound investment decisions.

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DeFi’s Unexpected Decline in 2025: A Deeper Look

Decentralized Finance (DeFi) was expected to be a key driver of the crypto bull cycle, providing decentralized financial services such as lending, borrowing, staking, and yield farming. However, as of early 2025, DeFi has been facing a decline and has not met initial expectations.

Here’s a detailed analysis based on recent data and research, as of March 19, 2025.

Background and Initial Expectations

DeFi is a decentralized financial ecosystem built on blockchain technology, enabling users to conduct financial transactions without intermediaries like banks or traditional financial institutions.

During the uptrend, DeFi was anticipated to attract more capital through yield farming, staking, and innovative financial products.

According to Exploding Topics, in 2020, DeFi’s Total Value Locked (TVL) increased 14 times, and by 2021, TVL peaked at $112.07 billion, showcasing its growth potential during bull markets.

The expectation was that DeFi would continue to drive the next uptrend, with TVL soaring due to new capital inflows