Key Notes

• Market indicators show significant maturation with Bitcoin's market cap exceeding $2T and total crypto valuation reaching $3.58T, driven by institutional investment and new financial products.
• Trading metrics reveal 36% of Bitcoin traded within monthly timeframes, with analyst projecting 2-4x increase that could signal market overheating and subsequent correction.
• Contrasting views emerge as Animoca's co-founder Yat Siu forecasts transformative industry changes, including widespread stablecoin adoption and evolution of meme coins into comprehensive ecosystem projects.

The crypto market cycle is nearing a closure, claims an analyst in a post on the blockchain analysis platform CryptoQuant. The digital asset market has rallied massively during the fourth quarter of 2024 and, while turning slightly bearish during late December, has once again resumed its uptrend with leading cryptocurrency Bitcoin once again claiming the $100,000 price level.

The CryptoQuant analyst ‘Crypto Dan’ highlighted the existing “pattern of alternating cycles of growth and decline, with an overall upward trend in prices” and added that Bitcoin and the broader digital asset space have risen sharply since January 2023, when the bull market began. At the time of writing, Bitcoin has claimed a valuation above $2 trillion, while the total crypto market cap stands at a monumental $3.58 trillion.

Crypto Dan summarized that the market is in the “latter stages of this cycle” because of a significant influx of “new investments” alongside “additional funds from existing investors.” These new products include Bitcoin and Ether exchange-traded funds (ETFs). Moreover, there is a possibility of Solana SOL $218.8 24h volatility: 2.9% Market cap: $105.69 B Vol. 24h: $4.22 B and other altcoin ETFs to debut in 2025.

According to Dan’s, the crypto market will reach its peak in Q1 or Q2 of 2025. The basis of the analyst’s prediction was the percentage of Bitcoin traded for less than a month, which has reached a value of 36%. While this value is currently lower than the peaks in other cycles, in the next couple of months, the percentage is expected to soar.

In the near future, the ratio is “likely to rise sharply 2 to 4 times,” according to Dan, while adding that such an event would cause the market to overheat, resulting in a period of correction similar to the previous years.

“Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised. For this reason, I am planning to gradually sell my holdings.” Dan noted.

Bitcoin Weekly Chart

Meanwhile, the weekly Bitcoin chart above confirms that the accumulation levels for the market-leading digital currency continue to follow an uptrend with no signs of a decline. On the other hand, the Relative Strength Index (RSI) reads a value of 61.91, which means the demand for Bitcoin is quite high in the medium term.

Animoca Brands’ Yat Siu Has Different Views

Yat Siu, co-founder of Animoca Brands, a leading venture capital firm in the crypto and Web3 space, said in a Coindesk interview that after Bitcoin’s BTC $101 983 24h volatility: 3.9% Market cap: $2.02 T Vol. 24h: $52.96 B 120% surge in 2024, the market has changed. The entrepreneur predicted that a massive digital asset adoption wave will be seen in 2025 and change the crypto industry forever. He sees a future where, in order to trade with the United States, other countries will need crypto rails, i.e., stablecoins pegged to the US dollar.

Siu predicted that soon, meme coins will debut their own L1s and L2s while non-fungible tokens will become a part of an ecosystem and will not be standalone projects only. In 2025, Siu sees meme coins and NFT projects “building games, applications, and other experiences, not just speculation.”

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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