The cryptocurrency market has been on a strong upward trajectory since early 2023. According to data from CryptoQuant, the crypto bull market is entering its final stages, raising questions about what lies ahead for Bitcoin (BTC) and Ethereum (ETH). With Bitcoin recently surpassing $100,000 and Ethereum breaking past $3,500, investors are wondering if there’s more room for growth or if it’s time to exercise caution.
Here’s a closer look at what analysts and industry insiders are saying about the crypto market’s future.
CryptoQuant Warns: Final Stage of Crypto Bull Market Is Here
Data analytics provider CryptoQuant recently published a report suggesting that the crypto bull market is nearing its cyclical peak. The firm warns that Bitcoin’s recent spike to $101,812 resembles patterns seen during previous market tops.
In a January 6 post, CryptoQuant contributor “Crypto Dan” stated, “With a substantial influx of new investments 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, one critical metric—Bitcoin’s short-term holding percentage—jumped to 36% in Q4 2024. Historically, a high percentage of recently purchased Bitcoin indicates that investors are becoming more speculative, a sign that the bull market is reaching its end.
While CryptoQuant acknowledges that Bitcoin and altcoins could see further gains in 2025, they urge investors to be cautious. “From a conservative standpoint and with risk management in mind, caution is advised,” the post concluded.
Other Analysts Predict 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 hit a medium-term peak of $180,000 in early 2025. They also project 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 cycle’s apex, we project 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 all-time highs as more institutional investors enter the market.
Traders on popular prediction platforms Polymarket and Kalshi also expect BTC and ETH to reach new heights in 2025. They believe regulatory developments, such as the approval of new crypto exchange-traded funds (ETFs) and the establishment of a U.S. Bitcoin reserve, could further boost the market.
What’s Driving the Crypto Bull Market?
Several factors have fueled the current crypto bull market:
Institutional Adoption
More institutional investors are embracing cryptocurrencies, driven by increasing regulatory clarity and new financial products like ETFs.
Macro Economic Trends
Global inflation and economic uncertainty have pushed investors toward Bitcoin as a hedge against traditional financial risks.
Halving Events
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 that we could be nearing the top of the cycle. Their data indicates that speculative behavior is increasing, which often precedes market corrections.
However, many analysts remain bullish, pointing to Bitcoin’s strong fundamentals and growing adoption.
VanEck, Steno Research, and traders on 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 urge caution, warning that speculative behavior could trigger a market correction. Others remain optimistic, forecasting new all-time highs for Bitcoin (BTCUSD) and Ethereum (ETHUSD) in 2025.
As always, investors should approach the market with a balanced strategy, considering both the risks and potential rewards. Whether the bull run continues or a correction looms, the crypto market is likely to remain a hot topic throughout 2025.
Featured Image: Freepik
