Markets
Has the Cryptocurrency Market Peaked? Here’s What the Experts Say
After a strong start to the year, market participants are wondering what’s next for crypto.
Not much, some say. Others predict further price increases throughout the second half of 2024, after one of the best performances in the history of exchange-traded funds.
This came despite persistent inflation, geopolitical tensions and political changes on U.S. soil, which could place Crypto in the foreground single-issue voter minds come November.
Analysts like Matthew Sigel, head of digital asset research at VanEck, see room for further growth based on historical trends.
“If the sustainability of the current cycle adheres to previous trends, this could indicate a potential market top between the second and fourth quarters of 2025,” Sigel said in a recent report. Note to investors.
Historically, the cryptocurrency market has seen distinct four-year cycles, with major price spikes typically occurring after the halving, Sigel said.
The 2013-2017 and 2017-2021 cycles followed this trend, with new all-time highs reached after each halving.
Sigel’s analysis posits that the current market cooling phase is a precursor to a new surge.
Matt Hougan, chief investment officer at digital asset manager Bitwise, also sees further upside following the possible launch of U.S. spot Ethereum ETFs, some of which experts I think it could happen as early as this month.
Ethereum ETFs could generate $15 billion in net flows by the end of 2025, Hougan said in a statement. note Monday.
“Investors love tech stocks,” Hougan said, referring to investors’ preference for “high-growth tech stocks,” including Nvidia and Meta. “It’s pretty easy for me to imagine investors selling a small portion of their tech exposure and adding ETH.”
However, the $15 billion figure would be lower than that of Bitcoin ETFs, Hougan said, which have already accumulated $14 billion in less than six months and are expected to reach more than $50 billion by the end of 2025.
There are also political shifts to contend with at home and abroad that could shift the narrative toward clearer regulations for the industry, according to some.
Traders don’t necessarily need to agree with the political shift sweeping Europe and the United States to see how it could be more favorable to crypto, said Pav Hundal, senior market analyst at Swyftx. Decrypt.
“At the very least, decentralized finance should surely be more attractive to businesses and retail investors when the political environment is so unpredictable,” he said.