CryptoQuant warns bull market nears end

CryptoQuant has warned that the cryptocurrency market is nearing the final stages of its current bull cycle.

According to a January 6 post by CryptoQuant contributor Crypto Dan, the market, which began its upward trajectory in January 2023, is likely to peak by the first quarter of 2025 or the second quarter at the latest.

The post highlighted that with a substantial influx of new investments and additional funds from existing investors, the market is currently in the latter stages of this cycle.

In particular, the fourth quarter of 2024 saw the percentage of Bitcoin (CRYPTO:BTC) traded for less than one month rise to 36%, a pattern similar to previous crypto market peaks.

CryptoQuant predicts this ratio may increase by two to four times before the market transitions into a bear cycle.

Despite the cautionary outlook, CryptoQuant stated that substantial gains in both Bitcoin and altcoins should still be expected in the short term.

“Expectations for substantial gains in both Bitcoin and altcoins should still be kept open,” the post explained.

However, it also urged caution and emphasised that risk management should be a priority for investors.

This view contrasts with other analysts, who are more optimistic about the market's future.

Steno Research analysts, for instance, forecast that 2025 will be the best year for crypto, with Bitcoin and Ethereum both surpassing their all-time highs.

VanEck analysts also predict a medium-term peak in Bitcoin’s price in early 2025, with a potential rise to $180,000, while Ethereum (CRYPTO:ETH) could exceed $6,000 by the end of the year.