What will happen to the crypto market by the end of the year
The Bitcoin rate has stabilized at $118,000. It has been fluctuating around this level for a week now, having adjusted by 3.5% from the maximum of $123,000 set ten days ago.
Meanwhile, altcoins have begun to outpace Bitcoin in growth in recent days. Ethereum (ETH), Solana (SOL), XRP (XRP) have updated local maximums, BNB (BNB) has set a new historical record. After sharp rises, the prices of coins have corrected, however, market analysts maintain generally positive forecasts.
Experts told RBC-Crypto whether a significant correction is possible in the near future and whether last year’s market rise at the end of the year will be repeated this time.
Protracted correction or confident growth?
Bitcoin is currently at risk, says Roman Nekrasov, founder of the ENCRY Foundation. According to him, the coin is under pressure from market participants who have been actively fixing profits since July 17. This behavior of investors indicates a decrease in faith in the possibility of continuing the bull run, the analyst notes.
From the point of view of technical analysis, there are signals that indicate the risks of a decline in Bitcoin in the near future to the range of $114-115 thousand, says Nekrasov. He added that there is a gap at the indicated level on CME – often such price gaps serve as a strong magnet for the cryptocurrency rate.
A CME gap is the difference in price between the close of CME futures on Friday night and their reopening on Sunday night. The CME is closed for the weekend. But since Bitcoin trades around the clock, there is often a discrepancy between the CME closing price and the price Bitcoin was trading at on crypto exchanges by the time the CME reopens on Sunday night. This leaves a gap in price, and more often than not, the price returns to the level before the gap.
Speaking about the coming weeks, the risks of a local correction definitely remain, says Nikita Zuborev, senior analyst at Bestchange.ru. But he added that a reversal of the global trend is not expected. In the past, the beginning of such an altseason would have been a negative signal for the imminent start of a protracted correction, but today the situation is less clear, says the expert.
According to him, the market continues to be in euphoria after regulatory victories in the United States. This strengthens the local growth trend of the entire crypto market, which has affected, among other things, the level of Bitcoin dominance, Zuborev explained. At the same time, he recalled that today and in the near future, the main driver of growth remains spot exchange-traded funds (ETF) for cryptocurrencies, which buy large volumes of tokens from the open market, which naturally pushes the price up.
In addition, the billions of dollars that corporate entities have poured into Bitcoin, Ethereum and Solana are not only fueling interest, but also serving as a strong catalyst for further growth, says VG GROUP Managing Partner Vagiz Nurullov.
“Ethereum continues to demonstrate a confident upward movement, and we do not believe that the growth was caused solely by the redistribution of liquidity from Bitcoin. Rather, this is evidence of a large-scale arrival of new institutional players who did not have time to enter BTC, but are trying not to miss the potential growth of the second cryptocurrency by capitalization,” Nurullov said.
He added that this results in FOMO (fear of missing out) buying, which further pushes the price up.
A similar scenario is unfolding around Solana, a favorite among retail investors, the analyst specified. According to him, SOL continues to strengthen its status as one of the most dynamic and promising altcoins of the current year.
“Risks are reduced”
It is quite possible that the crypto market is moving from the speculative phase of development to the institutional era with long-term growth potential and further stabilization of the rate, Zuborev believes. And the main thing, according to him, is that old patterns are no longer repeated with high accuracy, which means that it is becoming more difficult to predict market behavior.
“But in any case, the forecast for several months ahead is rather positive. It is possible that historical maximums will be updated several times before the end of 2025,” the analyst says.
Against the backdrop of a likely easing of monetary policy in the US, increased corporate demand for digital assets and, finally, due to the flow of liquidity from Bitcoin to more attractive assets in terms of growth, a new round of growth can be expected by the end of the year, Nurullov also believes.
Liquidity is growing again in the US, and observations show that some of the liquidity is settling in cryptocurrency one way or another, Nekrasov said, adding that “often with a gap of two to three months, but it is settling.”
He also drew attention to the decrease in tension in the geopolitical arena. Trump's actions in the “tariff war” no longer look so tough, the analyst says. In his opinion, the main shock from the American president's initiatives will probably remain in April 2025.
If we look at BTC from the point of view of the theory of cyclical behavior of the market, the cryptocurrency still has time to grow, Nekrasov believes. According to him, the bull run usually comes to an end somewhere around a year and a half after the halving, and a repeat of the cycle this time would allow BTC to grow until about mid-autumn.
“At the end of the year, there will probably be a cooling, but not as global as in previous crypto winters. The fact is that the market is becoming institutional. Large investors are accumulating BTC and withdrawing them from the market. The risks of panic sales are decreasing,” the analyst concluded.
Источник: cryptocurrency.tech