Markets
Has the Cryptocurrency Market Peaked? Here’s What Experts Say
After a positive start to the year, market participants are wondering what the future of cryptocurrencies will be.
Not much, some say. Others see further price gains throughout the second half of 2024, after one of the strongest performances in exchange-traded fund history.
This has occurred despite persistent inflation, geopolitical tension and political changes on American soil, which could further strain crypto in the spotlight of the minds of single-issue voters starting in November.
Analysts like Matthew Sigel, head of digital assets research at VanEck, see further room for improvement based on historical trends.
“If the current cycle length adheres to previous trends, this could indicate a potential market peak between Q2 and Q4 2025,” Sigel said in a recent Note to investors.
Historically, the cryptocurrency market has gone through distinct four-year cycles, with significant price spikes typically occurring after the halving, Sigel said.
The 2013 to 2017 and 2017 to 2021 cycles followed this trend, with new all-time highs being reached after each halving.
Sigel’s analysis posits that the current market cooling phase is a precursor to a further rally.
Matt Hougan, chief investment officer at digital asset manager Bitwise, also expects further upside following the possible launch of US spot Ethereum ETFs, which some experts I think it could arrive as early as this month.
Ethereum ETFs could collect $15 billion in net inflows by the end of 2025, Hougan said in a Note on Monday.
“Investors love tech stocks,” Hougan said, referring to investors’ preferences 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 less 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 shifting politics to contend with both within the United States and abroad, which could change the narrative. clearer regulation for industry, according to some.
Traders don’t have to agree with the political shift sweeping Europe and the U.S. to see how it could be more favorable to cryptocurrencies, said Pav Hundal, chief market analyst at cryptocurrency exchange Swyftx. Decipher.
“If anything, decentralized finance should certainly be more attractive to corporate and retail investors when the political environment is so unpredictable,” he said.