Crypto Bull Cycle Nears Peak: Key Signals Point to Massive Gains Ahead
Key Takeaways:
- Bitcoins short-term activity hits 36%, signaling the late bull cycle stages.
- Crypto may decouple from equities, hinting at potential new all-time highs.
- Risk management remains crucial amid possible overheating scenarios.
According to the latest report from CryptoQuant, the cryptocurrency market looks to have reached the late stages of the current bull cycle. Bitcoin is shining bright in maturity during this growth phase, spectacularly up since January this year.
A key metric that reflects the huge activity of this market is that 36% of Bitcoin has been traded for less than a month, while this is lower than peaks in past cycles, it remains consistent with a long-term downwards trend in the ratio.
Historically, such metrics have only signaled the proximity of the peak in the market cycle, which in this case could be for early to mid-2025. They are waiting for the short-term ratio of the realized market capitalization to spike 2-4 times before things overheat and transition the market into a bear cycle.
However, with further gains that might still be witnessed both in Bitcoin and in altcoins, balancing optimism with caution is recommended among investors. Gradual profit-taking began to appear to be a prudent strategy in the build-up to some volatility.
Crypto Correlation with Equities Shows a Shift
According to an X post by Santiment, Bitcoins correlation with traditional equities has started to break. For the better part of the last three years, cryptocurrencies have moved in lockstep with high-leverage tech stocks. But the early parts of 2025 have brought a divergence.
Bitcoin is now outperforming the S&P 500 in relative fluctuations, signaling the possibility of a break from its reputation as a tech-stock proxy. Historically, the crypto markets most robust bull runs have occurred during periods of minimal correlation with equities.
This could be that emerging independence from the stock market that paves the way for fresh all-time highs. If Bitcoin and the altcoins sustain this momentum sans equity markets, this sector could start entering uncharted growth territory.
Balancing Optimism with Caution
This crossover of market metrics with evolving dynamics provides a pointer to a very important moment for cryptocurrencies. While signs point to highs, it is very necessary to be cautious. The probability of overheating the market and thereafter heading to a down slope may loom large.
Investors should not lose sight of risk management in the face of seizing opportunities. As the crypto market inches closer to its next peak, strategic actions today could define outcomes in the volatile months ahead.
Related Reading | MicroStrategy Adds 1,070 BTC, Pushing Holdings to Record 447K
Read more: https://www.tronweekly.com/crypto-bull-cycle-nears-peak-key-signals-point/
Text source: TronWeekly
