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Crypto Potato 2025-03-20 04:37:40

When Will the Crypto Market Escape Its Stagnation? (Analyst Weighs In)

The crypto market is stuck in “no man’s land,” with stagnation and speculation shaping its uncertain future. This is according to crypto analyst Aylo, who says the sector is struggling to find direction, with prices dropping significantly and triggers for bull runs becoming rare. Stagnation and Weak Demand Weigh on Crypto In a lengthy post on X, Aylo said that outside of Bitcoin (BTC) and Ethereum (ETH), the market has barely seen any growth in the last four years. Trading volumes have also stalled, and the overall market cap has failed to register any meaningful growth. He also decried the lack of strong narratives and projects with real utility, saying the situation has hindered momentum and raised concerns about long-term investor confidence. “We are lacking narratives and projects that people actually believe in (tokens that people actually want to buy and hold),” the expert wrote. Adding to the uncertainty, CryptoQuant CEO Ki Young Ju recently warned that Bitcoin’s bull cycle may have already ended . He said the next 6 to 12 months could experience a sideways or bearish trend. The number one cryptocurrency’s price has fallen more than 23% from its January high of $109,000, with liquidity inflows also slowing. Furthermore, the selling pressure from investors who recently accumulated BTC but are now offloading at lower prices has worsened the downturn. In Aylo’s opinion, Bitcoin’s fate is intertwined with macroeconomic factors. He observed that the asset has often struggled to rally independently of stock market movements, a view that fellow analyst CrediBULL previously downplayed . While gold has historically performed well in uncertain conditions, BTC is still treated as a short-term risk asset. However, the market watcher contended that if the precious metal sustains the multi-month uptrend that saw it break beyond $3,000 to register a new all-time high, the cryptocurrency could eventually follow suit. Meanwhile, data from CryptoQuant indicates resilience is building among Bitcoin owners. The number of those holding the asset for 3 to 6 months has increased, suggesting long-term investors remain confident even with prices fluctuating. Institutional Adoption and Regulation Offer Hope Despite the sluggishness in the market, some observers believe upcoming regulatory changes could offer a much-needed boost. Reacting to Aylo’s post, Ignas, a decentralized finance (DeFi) expert, pointed out that institutional players are changing strategies. He mentioned Coinbase’s new KYC pools for tokenized assets and increased stablecoin involvement from major firms like Revolut and PayPal as signs of a shifting crypto landscape. At the same time, the U.S. government’s mellowing stance on digital assets could shape market direction. A user noted that improved regulations might benefit quality projects, even though broader market activity will likely remain muted until traditional financial markets stabilize. The post When Will the Crypto Market Escape Its Stagnation? (Analyst Weighs In) appeared first on CryptoPotato .

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