Cryptocurrency analytics firm CryptoQuant has published a new analysis suggesting that the cryptocurrency market may be entering the later stages of the current bull cycle that began in January 2023.
Since the start of the current bull cycle, Bitcoin has seen significant gains in both price and investor activity. A surge in new investments and additional funds from existing holders has fueled BTC’s upward momentum. However, CryptoQuant analysts now believe the market is approaching a turning point.
One focus of the report is the percentage of Bitcoin traded over the past month, as measured by realized market cap and UTXO (Unspent Transaction Output). This figure currently stands at 36%, lower than the peaks seen in previous bull cycles.
Despite this, the long-term trend, according to analysts, shows a decline in this rate, indicating a possible market peak in the first or second quarter of 2025. CryptoQuant analysts expect this metric to increase by 2-4 times in the final phase of the cycle, which is usually a sign of market overheating and the beginning of a bear cycle.
While the report advises caution, it also leaves room for optimism, suggesting that there could still be significant upside for Bitcoin and altcoins before the cycle ends. However, CryptoQuant notes that risk management is important as the market approaches a potential top.
*This is not investment advice.
