Will there really be a plunge before the bull market in the 2025 currency circle?

2025: Will the plunge before the bull market in the currency circle still come? The bull market that investors are looking forward to is casting a shadow over the violent fluctuations in the Bitcoin market. The fluctuations in prices have made investors wander in greed and fear. The most worrying question is: Will there be a plunge before the bull market in the 2025 cryptocurrency circle? This article will conduct an in-depth analysis of this.

Pulse before the bull market in 2025: It is difficult to predict

At present, it is still difficult to determine whether the cryptocurrency industry will plummet before the bull market in 2025. We need to comprehensively consider the macro economy and policy, market structure and changes in participants, Fed policies, market sentiment and confidence:

1. Macroeconomics and Policy: The bull market in the currency circle is closely related to macroeconomic policies. Economic policy adjustments after the US election will have a profound impact on the market. Loose monetary policy may inject a lot of liquidity, driving a bull market; otherwise, it may lead to a plunge.

2. Market structure and changes in participants: The influx of emerging investment forces brings vitality to the market, but at the same time it also brings the problem of market diversification. The surge in the number of cryptocurrency projects may lead to poor performance in some projects, which in turn affects market stability.

3. Federal Policy: The Federal Reserve's monetary policy has a significant impact on the currency circle. Continuous interest rate cuts may increase the probability of a bull market, but volatility or even plunge before interest rate cuts is not without precedent.

4. Market sentiment and confidence: Market confidence has a direct impact on currency circle fluctuations. In the early stage, small coins relied on market confidence, and in the later stage, they relied more on project strength and liquidity. Insufficient confidence or lack of liquidity may lead to limited market growth and even adjustments.

The bull market boom period in 2025: Time forecast

Some analysts predict that the bull market in the 2025 period will be between March and May. But there are other views, which believe that Bitcoin may pull back by 30% in the second quarter, altcoins may pull back by 60%, and mainstream coins will only start to rise in the third quarter and peak at the end of the year. In the forecast, the highest price of Bitcoin is about $180,000, Ethereum is more than $6,000, SOL is about $500, and SUI is about $10.

Historical data shows that Bitcoin's price increases significantly during the bull market, but lasts vary, usually from one to two years. However, market forecasts and historical data are for reference only. The actual situation is affected by a variety of factors. Investors need to look at it rationally and make decisions based on their own risk tolerance.

Outlook for the 2025 currency circle: Institutional Investment and Supervision

As time goes by, more institutional investors are expected to enter the cryptocurrency market. Many large financial institutions have launched related services. If the market continues its development trend in 2025, the cryptocurrency market will receive more institutional support. In addition, the change in attitudes towards cryptocurrencies by governments around the world will make the market more compliant and safer. Therefore, investors can maintain expectations for market development in 2025.

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