CryptoQuant analysts note that the current ‘bullish’ cycle in the cryptocurrency market, which started in 2024, exhibits unconventional dynamics compared to previous periods. In particular, several waves of intense growth are followed by sharp corrections, creating a sense of artificial market cooling.
This is reported by Finway
Signs of Influential Players’ Impact on the Market
Experts believe that such market behavior may be caused by the actions of influential participants trying to prolong the duration of the ‘bullish’ cycle. According to analysts, sharp declines after periods of growth may indicate deliberate steps aimed at curbing market overheating, ultimately allowing the cycle to last longer.
“Such movements are usually interpreted as attempts by influential players to cool down an overheated market, which may indicate an intention to extend the duration of the ‘bullish’ cycle. Ultimately, it is expected that the cycle will conclude with an euphoric phase leading to the formation of a large bubble.”
Characteristics of Altcoin Behavior and Comparison with Previous Cycles
CryptoQuant points out that during the latest corrections, altcoins performed particularly poorly—they significantly failed to meet investor expectations, negatively impacting overall market sentiment. Despite this, the market still demonstrated short-term rallies.
Comparing with previous periods, analysts remind us that in 2017, the market exhibited mostly stable growth with minor declines, while the main correction phase lasted approximately 7-8 months. Meanwhile, in 2021, the first part of the cycle was marked by prolonged declines due to the pandemic, but was followed by a rise with minimal downturns.
Earlier, CryptoQuant also emphasized that there is currently no euphoria in the market, which traditionally precedes the formation of a large bubble.