Tue 07 Jan 2025 ▪
7 min read
▪
by
Luc Jose A.
Since January 2023, the crypto market has been experiencing a bullish phase marked by a significant appreciation of Bitcoin and altcoins. This dynamic is based on several factors, including accelerating institutional adoption, a massive influx of capital, and an overall optimistic market sentiment. Additionally, there are anticipations surrounding the approval of new crypto ETFs and potential favorable regulations that boost investor confidence. However, according to CryptoQuant, this euphoria could soon reach a critical point. The analytics firm identifies several technical signals indicating that the market has entered its final phase. Among these is the significant increase in the volume of Bitcoin traded over the past month, which reached 36% in the fourth quarter of 2024. This phenomenon, observed during previous market peaks, suggests a possible correction in the short to medium term. Yet, this warning is not unanimously accepted. Institutions such as Steno Research and VanEck adopt a more optimistic view. According to them, the bullish trend could continue until the end of 2025, driven by increasing adoption and evolving regulatory frameworks. VanEck even estimates that Bitcoin could reach $180,000, while Ethereum may exceed $6,000 by the end of next year. In light of these divergent forecasts, a question arises: should investors expect new price spikes or, on the contrary, take their profits before a possible market reversal?