Crypto Market Approaches Peak with Bitcoin Surpassing $100,000
The crypto market cycle is approaching a conclusion, according to an analyst from the blockchain analysis platform CryptoQuant. The digital asset market experienced significant growth in Q4 2024, briefly turned bearish in late December, and has resumed its uptrend, with Bitcoin reaching the $100,000 price level.
CryptoQuant analyst ‘Crypto Dan’ highlighted the “pattern of alternating cycles of growth and decline” within an overall upward trend. Since January 2023, when the bull market began, Bitcoin's valuation surpassed $2 trillion, contributing to a total crypto market cap of $3.58 trillion.
Dan noted that the market is in the “latter stages of this cycle,” driven by a significant influx of new investments and additional funds from existing investors. New products like Bitcoin and Ether exchange-traded funds (ETFs) have emerged, with potential for Solana and other altcoin ETFs in 2025.
Dan predicts the crypto market will peak in Q1 or Q2 of 2025, based on the percentage of Bitcoin traded for less than a month, which currently stands at 36%. While lower than previous cycle peaks, this percentage is expected to increase significantly in the coming months.
He anticipates that this ratio could rise sharply by 2 to 4 times, potentially overheating the market and leading to a correction similar to past cycles. He advised caution, stating, “I am planning to gradually sell my holdings.”
The weekly Bitcoin chart indicates ongoing accumulation levels without signs of decline. The Relative Strength Index (RSI) is at 61.91, reflecting high demand for Bitcoin in the medium term.
Animoca Brands’ Yat Siu Has Different Views
Yat Siu, co-founder of Animoca Brands, expressed different opinions in a Coindesk interview, suggesting that after Bitcoin’s 120% surge in 2024, the market landscape has shifted. He forecasts a significant wave of digital asset adoption in 2025 that could transform the crypto industry, predicting that countries wishing to trade with the U.S. will require stablecoins pegged to the U.S. dollar.
Siu envisions meme coins launching their own Layer 1s and Layer 2s, while non-fungible tokens will integrate into ecosystems rather than remain standalone projects. He expects meme coins and NFT initiatives to focus on building games, applications, and experiences rather than mere speculation in 2025.