CryptoQuant: 2025 will start with a bear market

The CEO of the analytical platform CryptoQuant, Ki Young Ju, predicts that by the end of 2024, the price of bitcoin BTC $100,609.32 Bitcoin -5.60% Market capitalization $1.99 trillion VOL. 24 hours $5.29 billion will drop to $ 58,000, given the excessive activity in the futures market.

The analyst added that despite the pessimistic forecast, there is a possibility of further growth in 2025, when the cryptocurrency market may enter a new phase.

Joo noted that his pessimism is due to the high level of open interest (OI) in the bitcoin futures market, which is currently at a record level of about $ 50 billion, so high OI can lead to a correction in the market, as it indicates excessive activity and a potentially dangerous overload of the derivatives market.

According to CryptoQuant’s forecast, by the end of 2024, the price of bitcoin will drop to $ 58,974, which is more than 20% less than current levels.

At the time of writing, the bitcoin rate has reached $ 88,904, the market capitalization is $ 1.76 trillion, and daily sales have stopped at $ 139.17 billion.

As you know, the crypto market’s Fear and Greed Index is at a record high of 76, indicating «extreme greed» among investors, as the last time this figure was close to this level was in April, when bitcoin first broke the $ 70,000 mark.

Joo noted that if the market goes through a correction by the end of the year, it could give rise to new growth, but in the event of a strong rally by the end of the year, we could witness the beginning of a new bull cycle. However, he also expressed hope that his prediction would be wrong.

«I hope I’m wrong,» he said.

Despite short-term predictions of a correction, bitcoin reportedly remains in the spotlight, and its long-term outlook is still positive for many investors.