According to the data provided by a blockchain company, CryptoQuant, cryptocurrency trading has increased during the years.
With the market approaching its peak, it is strongly advised to exercise caution, even if high-risk investments still bring great rewards. This article discusses the potential development of the next long-term and Ethereum and Bitcoin are also under the inspection by the analyst for 2025 potential and dangers that the investors might face if they are not aware of.
About bull Market
CryptoQuant's analyst made assumption that Crypto Dan, which is the bull cycle will likely reach its peak in the first quarter of 2025, or the latest in the second quarter. The market has seen a major inflow of new investments and more money from existing investors, which confirms the fact that we are now towards the end of the cycle.
The behavior of Bitcoin is the most important factor during this period. In the fourth quarter of 2024, Bitcoin traded for one month and less than one month, reaching 36%, and this pattern usually indicates a market top. As the number goes higher, the investors will have to stay with caution to the adjustments that could be made as the bull market ends and changes to the bear cycle.
Bitcoin and Ethereum's Gains and Risks in future
Analysts said that Bitcoin is going to hit $180,000 and Ethereum is expected to reach $6,000 by the end of this and more than that the market is also awaiting new crypto exchange-traded funds (ETFs) for traders.
There are risks, however, since the market is almost at its peak. CryptoQuant believes that there may be a correction since a considerable percentage of Bitcoin is being traded for less than a month. The investors need to be watchful and handle risks since the market may experience volatility.
What's next?
Although the peak in the market is near, Bitcoin and Ethereum have enough space to make huge gains. Experts are optimistic about them till 2025. Crypto bull market will touch the mid-term peak in the first quarter of 2025, but it will rally into all-time highs by the end of the year, according to an asset manager, VanEck. Bitcoin might hit as high as $180,000 and Ethereum above $6,000 by the end of 2025, according to VanEck.
Trading platforms such as Polymarket and Kalshi show similar optimism as they predict a record-breaking high for BTC and ETH in 2025. The traders also expect that several new cryptocurrency exchange-traded funds might be approved in the United States, thus facilitating exposure for investors in the digital asset market.
Risks and Challenges in the Future
Despite the positive outlook, there are risks. CryptoQuant warns that we are entering the potential correction phase. The percentage of Bitcoin traded for less than one month is extremely high. As the bull cycle ends, this may send the market sharply downwards. This means investors must be aware of and manage their risk as the market is very volatile.
Get ready for the 2025 cryptocurrency rise.
The market is booming and there is still an opportunity for Bitcoin and Ethereum to thrive. While caution and preparation may be required in case of decline, investors were to be extra careful and get themselves ready for what might happen 2025 is going to be a big year for crypto; Ethereum and Bitcoin might hit an all-time high.
