While Bitcoin reached a staggering all-time high of $109,241 in January 2025, dark clouds are gathering over the crypto landscape. CryptoQuant’s CEO has delivered a sobering forecast: the bull market is fundamentally over.
Crypto enthusiasts, brace yourselves for 6-12 months of bearish or sideways action. Not exactly the lambo-fueled future many had hoped for.
On-chain metrics paint a grim picture. Fresh liquidity is drying up faster than a puddle in the Sahara, and new whales are selling at lower prices. The PnL Index Cyclical Signals? They’re practically screaming “sell” right now.
The crypto market’s pulse is weakening, with liquidity evaporating and whale behavior signaling it’s time to head for the exits.
The Principal Component Analysis chart looks about as bullish as a matador’s worst nightmare. Bitcoin’s already down 22% from its peak. Ouch. Support levels around $75,000-$78,000 are now critical—like, “don’t-look-down” critical.
Historical patterns suggest previous cycles lasted 12-18 months, but this one might be cutting its run short. The moving averages continue trending downward, confirming the bearish market sentiment across major cryptocurrencies. The institutional picture isn’t helping either. Bitcoin ETF inflows have been negative for three straight weeks. That’s like showing up to a party and watching people leave through the back door.
Still, some whale wallets continue growing, suggesting not everyone’s jumping ship. We may be entering the typical Reversal Phase characterized by high volatility and rapidly declining prices. Macroeconomic factors are playing their part too. The Fed’s interest rate decisions have Bitcoin on a leash, and global liquidity cycles are tightening their grip.
All eyes are on potential quantitative easing that could revive the rally. Maybe. Not everyone’s convinced of the doom and gloom, though. Some analysts are rolling their eyes at the bearish outlook, pointing to global money supply reaching new highs as a potential catalyst.
There’s also chatter about a “right-translated” cycle peak possibly occurring later in 2025. If history’s any guide, the next major bull run might have to wait until the 2028 halving approaches.
For now? The party’s on pause. Hope you didn’t remortgage the house.
