Key Points
- Analyst Crypto Dan suggests the crypto market cycle is nearing its end, with Bitcoin reclaiming the $100,000 price level.
- Yat Siu, co-founder of Animoca Brands, anticipates a significant digital asset adoption wave in 2025.
The analyst Crypto Dan from blockchain analysis platform CryptoQuant believes the crypto market cycle is drawing to a close.
The digital asset market saw a massive rally in the fourth quarter of 2024. Despite a slight bearish turn in late December, the market has resumed its upward trend, with Bitcoin reclaiming the $100,000 price mark.
Market Analysis
Crypto Dan noted a pattern of alternating cycles of growth and decline, with an overall upward trend in prices. Since January 2023, Bitcoin and the broader digital asset space have seen a sharp rise. Currently, Bitcoin’s valuation stands above $2 trillion, with the total crypto market cap at a staggering $3.58 trillion.
According to Crypto Dan, the market is in the latter stages of this cycle due to a significant influx of new investments and additional funds from existing investors. These new products include Bitcoin and Ether exchange-traded funds (ETFs). There is also the potential for Solana and other altcoin ETFs to debut in 2025.
Crypto Dan predicts the crypto market will peak in Q1 or Q2 of 2025. This prediction is based on the percentage of Bitcoin traded for less than a month, which currently stands at 36%. This value is expected to increase significantly in the coming months.
Crypto Dan suggests that the ratio is likely to rise sharply 2 to 4 times, potentially overheating the market and leading to a period of correction, similar to previous years. He advises caution and plans to gradually sell his holdings.
The weekly Bitcoin chart confirms that the accumulation levels for the market-leading digital currency continue to follow an uptrend with no signs of a decline. The Relative Strength Index (RSI) reads a value of 61.91, indicating high demand for Bitcoin in the medium term.
Contrasting Views
Yat Siu, co-founder of venture capital firm Animoca Brands, has a different perspective. In a Coindesk interview, he stated that after Bitcoin’s 120% surge in 2024, the market has evolved. Siu anticipates a massive digital asset adoption wave in 2025 that will revolutionize the crypto industry.
He envisions a future where other countries will need crypto rails, i.e., stablecoins pegged to the US dollar, to trade with the United States. Siu predicts that meme coins will debut their own L1s and L2s, and non-fungible tokens will become part of an ecosystem and not just standalone projects. He sees meme coins and NFT projects building games, applications, and other experiences, not just speculation, in 2025.
