Matthew Sigel's forecast from VanEck presents an optimistic outlook but also includes important warnings about the cryptocurrency market in the coming years. Accordingly, Bitcoin's price could reach $180,000 in the first quarter of 2025, but it is unlikely to sustain this level for long and may drop sharply by 30%. Similarly, Ethereum, Solana, and other altcoins are also predicted to reach record price levels before undergoing deep corrections.
Key points in the forecast:
1. Bitcoin and altcoins reaching peak heights:
• Bitcoin: $180,000.
• Ethereum: $6,000.
• Solana: $500.
• Sui: $10.
2. Strong corrections in the summer:
• Bitcoin could drop 30% from its peak.
• Altcoins may drop by up to 60% due to higher volatility.
3. Warning indicators to watch:
• High funding rates: When investors have to pay funding rates exceeding 10% for an extended period, this is a sign of excessive speculation.
• Unrealized profits over 70%: When many investors hold significant paper profits, the market may be in a euphoric phase.
• Bitcoin's market dominance: If this ratio falls below 40%, it may indicate that capital is excessively flowing into altcoins, leading to instability at the end of the cycle.
4. Political factors affecting the market:
• A new administration, particularly under the leadership of Donald Trump with cryptocurrency-friendly officials, could provide significant momentum for Bitcoin and the market in general.
• Defining Bitcoin as a strategic asset under a clear legal framework could drive market growth.
Overall perspective:
This forecast not only highlights major growth milestones but also addresses the risks that investors need to be aware of. Strong corrections following bull phases are common in the cryptocurrency market. However, the strong recovery outlook by the end of 2025 also presents opportunities for long-term planners.
For investors, closely monitoring market indicators and political changes will be key to seizing opportunities and avoiding potential risks.
