Bitcoin’s future may be breaking away from its traditional cycle, with analysts suggesting that the steep corrections of previous years could be a thing of the past.
In a January 31 post on X, analysts from Singapore-based blockchain firm Matrixport argued that Wall Street’s increasing involvement could extend Bitcoin’s bull market well beyond 2025.
#MatrixOnTarget Report???? – Jan 31: How this #Bitcoin Bull Market Could extend beyond2⃣0⃣2⃣5⃣????#Matrixport #cryptocurrency #BullMarket #BTC pic.twitter.com/rzoNzpm0KZ
— Matrixport Official (@Matrixport_EN) January 31, 2025
Historically, the world’s largest cryptocurrency by market capitalization has followed a familiar pattern—three years of strong growth followed by a sharp correction of at least 70%. However, analysts believe this cycle may be shifting.
“These institutional investors not only hold Bitcoin for longer durations but are also buoyed by the confidence provided by more transparent regulations. Additionally, structural macroeconomic tailwinds suggest that substantial capital allocation into Bitcoin could continue for years,”
Matrixport noted.
Bitcoin typically reacts to liquidity changes with a 13-week lag, which analysts say could indicate an upcoming correction. However, they point out that Bitcoin is showing signs of breaking from its usual patterns, potentially decoupling from global liquidity dynamics and maintaining its current levels. Matrixport analysts highlight that Bitcoin’s price has historically followed a “power-law log chart,” where the lower boundary represents the cycle’s bottom. A breakout beyond this power-law line, they explain, typically signals the start of a new bull market.
According to this framework, the current cycle suggests potential upside targets of $157,000 or even $315,000. However, analysts caution that the timing remains uncertain, as this cycle’s dynamics may differ from those of the past.
This report follows recent struggles in Ethereum’s performance since the 2022 Merge, as it fails to match Bitcoin’s momentum. Despite several network upgrades, their impact on ETH’s price has been minimal, according to Matrixport. The firm views these upgrades as gradual steps rather than immediate catalysts. Wall Street’s wavering interest in spot Ethereum ETFs and the rise of meme coins on cheaper networks further challenge ETH’s dominance. However, ether issuance recently surpassing TRON’s reflects continued trust in Ethereum’s security and long-term stability.
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