Cryptocurrency strategist predicts rapid growth of the digital asset market

A crypto market analyst known as Crypto Dan from CryptoQuant has warned ofan approaching peak in the market cycle and a possible reversal in the price of bitcoin SOL $167.27 Solana -3.77% Market capitalization $81.75 billion VOL. 24 hours $0.25 billion . He noted that maintaining stability in the market along with updating the historical maximum of the main crypto asset could lead to the active growth of altcoins and the influx of new investors. This, in his opinion, will be a sign of the end of the current cycle, so investors should develop risk management strategies in advance.

In the first half of the year, institutional capital is expected to increase and retail traders are expected to become more active. CryptoQuant analysts also drew attention to the record growth in the supply of USDT stablecoin on centralized exchanges. Since November, it has increased by 41% - from $ 30.5 billion to $ 43 billion, which has increased market liquidity. Historically, this has contributed to the growth of crypto asset prices.

Glassnode data shows that the share of bitcoins held by new investors for 24 hours to three months is still lower than in previous cycles. Currently, this figure is 50.2%, while in 2018 it reached 85%, and in 2021 it was 74%.

Despite the signs of an approaching peak, Glassnode analysts compared the current market with previous bullish trends in BTC and concluded that the cryptocurrency still has the potential for further growth.