Where is the all crypto market headed?

Of all the virtual asset classes, cryptocurrencies have perhaps had a fascinating history and have given rise to simply unmatched possibilities.

The market climate in the early stages of crypto assets was very different from what it is now. These revolutionary assets were only known to a small group of tech-savvy people, and even they had doubts about their feasibility, durability, and value.

Early investors significantly impacted cryptocurrency pricing since they kept encouraging purchases until Bitcoin (BTC) trading using trusted bitcoin trading software surpassed USD 1. From then on, a bigger crowd of intrepid traders who first learned about cryptocurrencies and Bitcoin from the mainstream press began to affect the new investors.

As time passed, this community expanded, and the safe advocates gained a solid following and currently make up most cryptocurrency traders.

Market cycles

The cryptocurrency market has traditionally closely followed a four-year market cycle, with ecstatic and explosive market peaks and severe, agonizing downturn markets in between. Such market cycles have generally coincided with half of Bitcoin's supply, which has occurred on two separate occasions.

The 3rd cryptocurrency market cycle is now nearing its end with stable trade prices, while the next Bitcoin halving is anticipated for March or April 2025. In the past, bull markets in cryptocurrencies began more than a year before the Bitcoin supply would be halved. It may be because investors are anticipating a smaller future supply and the end of the previous market cycle's washout.

Where are we?

The visibility of on-chain blockchain records, which enables the capacity to identify trends of blockchain participants via their transactional data, is a significant distinction between the cryptocurrency and conventional markets.

The current phase of the crypto market cycle and potential future developments can be ascertained by gazing at the on-chain data and finding trends of peak and bottom levels. A person sitting on significant earnings will frequently behave differently than a person sitting on substantial losses, particularly when they have debts to address.

Additionally, the Bitcoin mining sector is under economic strain, which has traditionally only occurred in the latter stages of bear markets. Data analysis, which aims to comprehend the prices the marketplace is ready to buy and sell at as well as how much, is a more conventional method of determining the strength of the market.

Additional information that can be utilized to determine overbought or oversold circumstances for Bitcoin is provided by technical analysis based on price data. These once more indicate a bear market in its last stages, with numerous indicators hitting historic lows and the most extreme oversold levels.

An insight into the average crypto user’s profile

The cryptocurrency market is a dynamic sector that frequently experiences changes in trends, viewpoints, and even foundations. It is therefore not surprising to see current cryptocurrency investors adapting and changing to fit the new circumstances. But what we want to discuss right now is the typical profile of a crypto trader, which is representative of many participants in the market.

It is important to note that many cryptocurrency investors in today's market are regular individuals who are not especially tech-savvy but trust in the ideas and solutions provided by cryptocurrencies. They work well together and are a tremendous asset to the future expansion of the cryptocurrency sector.

According to a study of Bitcoin's futures and spot marketplaces, the growing connections between cryptocurrencies and other asset classes seem to be caused mainly by futures contracts, which have been dragging the market down. Yet, as any knowledgeable investor would know, the supply and demand in the underlying spot markets dictate medium- to long-term prices.

There is scant proof that owners of Bitcoin spots are engaging in the normal risk rotation. Regardless of macroeconomic factors, a high crypto market in the second half of 2021 and a severe bear market in 2022 have always been based solely on historical crypto market cycle timelines.

Final words

When the economy deteriorates, the chances are more vital for some assets, like gold and cryptocurrency. Assume that the current inflation, political unrest, and general unrest persist or worsen.

For at least the upcoming 12 months, Bitcoin and other cryptocurrencies may have limitless growth potential.