Analyst Warns of Imminent Market Cycle Peak and Bitcoin Price Reversal

The market cycle peak is approaching, and investors should brace for an impending market phase shift, according to CryptoQuant contributor known as Crypto Dan.

“The market remains stable for now, but if Bitcoin reaches a new all-time high with significant momentum, followed by similar trends in altcoins and a wave of new investors, the cycle’s end could be near. Therefore, it’s crucial to start considering risk management strategies now,” the expert noted.

He forecasts an influx of institutional capital and increased activity from retail market participants in the first half of the year.

Analysts from the company also highlighted a record volume of USDT supply on centralized exchanges.

“Since November 4, the USDT supply has surged from $30.5 billion to $43 billion (+41%), enhancing market liquidity. Historically, more stablecoins lead to higher prices,” explained CryptoQuant.

According to Glassnode, the share of Bitcoins held by “new investors” from 24 hours to three months is still significantly lower than in previous market cycles.

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:

?2018 peak: 85%
?2021 peak: 74%https://t.co/hkTSpFVAPG pic.twitter.com/6gcOgIIlvM

— glassnode (@glassnode) January 28, 2025

The current figure is 50.2%; the peak in 2018 was 85%, and in 2021 it was 74%.

Glassnode analysts compared the current and previous Bitcoin bull runs and concluded that there are still opportunities for accelerated growth in the foreseeable future.