The market cycle peak is approaching, and investors should prepare for a phase shift, warns CryptoQuant contributor Crypto Dan.
“As long as the market remains stable, but if Bitcoin reaches a new all-time high with strong momentum, followed by a similar trend in altcoins and a wave of new investors, the cycle’s end may be near. It’s crucial to start thinking about risk management strategies now,” the expert noted.
According to his forecast, institutional capital inflows and increased retail investor activity are expected in the first half of the year.
CryptoQuant analysts also recorded a record-high supply of USDT on centralized exchanges.
“Since November 4, USDT supply has surged from $30.5 billion to $43 billion (+41%), increasing market liquidity. Historically, more stablecoins mean higher prices,” the company explained.
According to Glassnode, the share of Bitcoin held by “new investors” for 24 hours to three months is currently 50.2%. For comparison: in 2018, it reached 85%, and in 2021 — 74%.
At 50.2%, the proportion of wealth held by new #Bitcoin investors (24H to 3 months), is still well below the levels seen during previous ATH cycle tops:
— glassnode (@glassnode) January 28, 2025
🔺2018 peak: 85%
🔺2021 peak: 74%https://t.co/hkTSpFVAPG pic.twitter.com/6gcOgIIlvM
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