Crypto Bull Market: Are We in the Final Stages?

Photo by Hans Eiskonen on Unsplash

According to data analytics provider CryptoQuant, the current crypto bull market may be entering its final phase. While there’s still potential for significant price gains, investors are being urged to approach the market with caution as signs of a cyclical peak begin to emerge.

Here’s what we know about the current state of the bull market, when it might end, and how analysts’ predictions vary.

Where Are We in the Bull Cycle?

CryptoQuant contributor Crypto Dan believes that the bull market, which began in January 2023, is now in its “later stages.” In a recent post, Crypto Dan noted that historical patterns suggest the market could reach its peak by the first or second quarter of 2025.

One key indicator supporting this view is the percentage of Bitcoin traded for less than one month, which spiked to 36% in Q4 2024. This metric typically surges near market tops, signaling heightened short-term activity as new and existing investors pile in during the final stretch of a bull run.

CryptoQuant expects this ratio to rise even further before the market eventually cools, triggering a new bear cycle.

Still Room for Gains — But Stay Cautious

Despite the warning signs, CryptoQuant emphasized that the market still has room to grow. Both Bitcoin and altcoins could see substantial gains in the coming months as new investments pour in.

However, the firm also advises caution:

• Risk Management is Key: While the potential for profits is significant, the likelihood of a market correction is increasing.
• Timing the Top is Tricky: Historically, trying to perfectly time the market peak is challenging, and chasing late-stage gains often carries higher risks.

For long-term investors, this may be a time to reassess strategies, lock in some profits, and prepare for potential volatility.

Contrasting Views: How Bullish Is the Market?

While CryptoQuant is sounding the alarm, other analysts have a more optimistic outlook.

1. Steno Research

Steno Research expects 2025 to be a banner year for crypto, predicting that both Bitcoin (BTC) and Ethereum (ETH) will smash their all-time highs.

2. VanEck’s Bullish Forecast

Asset manager VanEck shares a similar sentiment, projecting a “medium-term peak” for the bull cycle in early 2025, followed by another surge later that year.

• Bitcoin Prediction: $180,000 at the cycle’s peak.
• Ethereum Prediction: Over $6,000.

3. Polymarket and Kalshi Traders

Traders on platforms like Polymarket and Kalshi are equally bullish, forecasting record highs for BTC and ETH in 2025. They also anticipate major regulatory milestones, such as the approval of new crypto ETFs and even the establishment of a U.S. Bitcoin reserve.

What’s Next for Crypto Investors?

If CryptoQuant’s analysis is correct, the market may be nearing its peak sooner than most expect. However, whether the top arrives in early 2025 or later in the year, one thing is certain: volatility will increase as the bull cycle matures.

Here’s how investors can prepare:

1. Secure Profits: Lock in gains incrementally as prices rise to avoid being caught off guard by a sudden correction.
2. Diversify Holdings: Explore altcoins and other blockchain-based investments to spread risk.
3. Stay Informed: Monitor key market indicators, including trading volumes, new investments, and regulatory developments.

Final Thoughts

The crypto bull market is undeniably thrilling, but as we move deeper into the cycle, it’s essential to stay grounded. Whether the peak arrives in early 2025 or later, managing risk and planning for market downturns will be crucial.

As always, the crypto market thrives on uncertainty, and navigating it successfully requires a balance of optimism, caution, and strategy. While no one can predict the exact timing of the top, understanding the signs and trends will help investors make informed decisions as the bull cycle evolves.

Crypto Bull Market: Are We in the Final Stages? was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.