CryptoQuant Says Bitcoin (BTC) Market Is in 'Later Stages' of Bull Cycle, Warns 'Caution Is Advised' for Investors

The cryptocurrency market is now in the “later stages of the current bull cycle,” and “caution is advised” for investors, according to data analytics provider CryptoQuant.

Cryptocurrency markets are now in the “later stages of the current bull cycle,” and investors should “proceed with caution,” according to data analytics provider CryptoQuant.

The bull market, which began in January 2023, is likely to reach its cyclical peak by the first quarter of 2025, or the second quarter at the latest, said Crypto Dan, a CryptoQuant contributor, in a Jan. 6 post.

“With a large influx of new investments and additional funds from existing investors, we can assume that the market is now in the later stages of this cycle,” the post said.

In the fourth quarter of 2024, the percentage of Bitcoin (BTC) traded for less than one month spiked to 36%, a pattern resembling prior crypto market tops, the post said.

This ratio is likely to continue rising, potentially increasing by two to four times before correcting at the start of a bear cycle, said CryptoQuant.

“So, expectations for large gains in both Bitcoin and major altcoins should still be kept open,” the post said.

Source: CryptoQuant

Related: 2025 will be crypto’s best year ever — Steno Research

Contrasting views

CryptoQuant’s cautious take contrasts with the views of most analysts, who expect the bull run to continue through the end of 2025, potentially correcting in the fourth quarter.

Analysts at Steno Research expect 2025 to be crypto’s best year ever, with BTC and Ether (ETH) both crushing all-time highs, among other potential “remarkable positive developments.”

Asset manager VanEck expects the crypto bull market to hit a “medium-term peak” in the first quarter of 2025 before surging to all-time highs by the end of the year.

“At the cycle’s apex, we project Bitcoin (BTC) to be valued at around $180,000, with Ethereum trading above $6,000,” VanEck said in a December blog post authored by head of digital asset research Matthew Sigel.

Similarly, traders on betting markets Polymarket and Kalshi expect BTC and ETH to hit record highs in 2025. They also anticipate the United States greenlighting several new types of crypto exchange-traded funds (ETFs) and establishing a strategic Bitcoin reserve.

Magazine: How crypto laws are changing across the world in 2025

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