The cryptocurrency market shows promising signs as Bitcoin enters a bull market, stabilising below $3 trillion. The Fear and Greed Index moves into greed territory, and significant investments bolster market confidence. Predictions indicate Bitcoin could potentially peak at $200,000 by 2025, with substantial growth expected into 2030 and beyond. Meanwhile, Ethereum seeks to enhance transaction capacity, and Monero sees a major rise linked to illicit transactions.
The cryptocurrency market is currently cruising just below a key threshold. Bitcoin has recently entered a bull market and is fluctuating around the $95,000 mark. Over the past week, the market cap for crypto has surged by 7.5%, resting just shy of the $3 trillion benchmark. This consolidation is crucial, especially as it approaches the 200-day moving average, an indicator that could draw in substantial investment from active funds. If Bitcoin can maintain its position above the $3 trillion mark, there could be a notable uptick in buying activity.
The Cryptocurrency Fear and Greed Index is also showing signs of positivity, having moved out of fear territory with a current reading of 60. This is a marked shift from late February, when it hovered below 50 for weeks. Generally, a bounce back from such low levels is viewed as a potential precursor for further market gains.
Bitcoin’s performance is notable, not just for breaking above the 50- and 200-day moving averages but for surpassing recent local highs, signalling that the downtrend may have been broken. This sort of momentum often leads to wider market growth that includes alternative cryptocurrencies, or altcoins.
Investment trends are backing this optimism, with CoinShares reporting a $3.423 billion increase in global cryptocurrency fund investments last week. This figure marks the highest inflow since December 2024. Bitcoin enjoyed the bulk of this with $3.188 billion, while Ethereum, XRP, and Sui attracted lesser amounts. Interestingly, Solana witnessed a decline of $6 million.
Market analysis firm Bernstein projects Bitcoin could peak at $200,000 by the end of 2025, despite anticipating bear markets. They predict it might reach $500,000 by 2030 and soar to $1 million by 2033, driven by reduced supply and an uptick in corporate wallets. Notably, ETFs and corporate holdings currently hold nearly 9% of Bitcoin’s total issuance.
In other developments, Ethereum is contemplating a proposal that would increase its gas limit by 100 times, potentially allowing it to handle up to 2,000 transactions per second. Meanwhile, Monero—an anonymous cryptocurrency—spiked by 50% recently, hitting four-year highs following a suspicious transaction involving around 3,520 BTC, worth approximately $330 million. This money, reportedly stolen, was quickly laundered into Monero and similar privacy-focused currencies.
With over a decade of experience analysing the currency market, world economy, gold, and oil, Alexander frequently contributes insights to leading socio-political and economic publications, shares his views on radio and television, and publishes comprehensive research.
