VanEck Foresees a Crypto Correction in Q1 Next Year, Followed by Major Bull Run

The crypto market is expected to reach a “medium-term peak” at the start of 2025, according to VanEck’s projection, and then soar to all-time highs by year-end. Bitcoin may hit $180,000 at the current cycle’s peak, while Ethereum may surpass $6,000, according to a blog post published on December 13 by Matthew Sigel, VanEck’s head of digital asset research.

In addition to Bitcoin and Ethereum, other cryptocurrencies like Sui and Solana could also experience significant price growth, with projections of surpassing $10 and $500, respectively. However, before hitting these peaks, the market could undergo a correction period. VanEck anticipates a 30% decline in Bitcoin’s value during the summer months, with altcoins facing even steeper drops, potentially falling by as much as 60%. This consolidation phase, they suggest, would precede the next wave of upward momentum.

Additionally, the blog article points out that prolonged financing rates on Bitcoin perpetual futures above 10% may indicate a period of overextension in speculation, which could lead to a brief market peak.

VanEck has previously made long-term predictions about cryptocurrency prices. Earlier this year, Sigel suggested that by 2050, Bitcoin’s value could soar to $2.9 million, while Ethereum might reach $22,000 by 2030.

Other analysts share a similar perspective on the short-term dynamics of the market. Ryan Lee, Bitget Research’s chief analyst, also sees the potential for Bitcoin to decline by 30% before continuing its bullish trajectory.

He pointed out in late November that historical trends support this possibility, as Bitcoin often corrects significantly before reaching its cyclical highs. Furthermore, he noted that U.S. markets tend to experience downturns following presidential inaugurations, with Donald Trump scheduled to take office on Jan. 20 next year.

In addition, VanEck projects a significant change in U.S. policy on cryptocurrencies in 2025, predicting the inclusion of Bitcoin in a strategic reserve and the authorization of more exchange-traded funds (ETFs) with a crypto focus. The company anticipates that the Securities and Exchange Commission’s (SEC) new leadership will help to make these advancements possible and open the door for numerous spot cryptocurrency ETFs.

Other market players, such as Sygnum Bank, have highlighted the potential for institutional adoption to drive sudden increases in demand. The bank recently suggested that such shifts could lead to a sharp rise in Bitcoin’s spot price as early as next year.

Meanwhile, BlackRock, the largest asset management firm globally, has recommended that investors allocate up to 2% of their portfolios to Bitcoin, framing it as a “reasonable” approach to gaining exposure to the asset class.

Crypto industry players like HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) (TSX.V: HIVE) will be watching to see if these market predictions come to pass.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN