Crypto Bull Run Ahead! Liquidity vs. Market Cycle Explained

Crypto analyst Michael van de Poppe recently sparked a debate on X, posing a key question for investors: Should they focus on liquidity or the historical four-year market cycle when predicting the next major crypto surge? It’s a challenging decision. Along with raising this question, he also pointed to promising signs for the future growth of the altcoin market.

Let’s explore the details.

Liquidity vs. Market Cycles: What Will Drive the Next Peak?

Michael highlighted the importance of the four-year cycle in crypto trading and asked a critical question: Will the next surge be driven more by liquidity or the cycle itself? Historically, the third year of this cycle has often brought significant gains.

For example, Bitcoin saw a +5,435% return in 2013 and a +1,369% return in 2017, while Ethereum posted a +9,380% return in 2017. Based on this pattern, many expect a strong uptrend in 2025, the third year of the current cycle. In 2023, Bitcoin and Ethereum saw gains of +155.4% and +90.8%, respectively. This year, Bitcoin is up +63.5%, and Ethereum has gained +20%.

The analyst also suggested that liquidity might become a key factor in driving market growth. If liquidity takes the lead, it could lead to a more gradual, prolonged bull market rather than a quick peak. This could offer more opportunities for long-term gains.

Is an Altcoin Bull Run Near?

Michael predicts a bull run in the altcoin market could be approaching, possibly signaling the end of the longest bear market in crypto history.

The total market cap of cryptocurrencies, excluding the top ten cryptos, was around $223.989B. It slipped to a low of $204.994B on October 3. Since October 10, it has been climbing consistently. Yesterday, it touched a peak of $232.639B. In the period between October 10 and 20, the market experienced a surge of at least 11.92%. 

In summary, Michael van de Poppe’s latest insights suggest that the crypto market might be nearing a turning point. Whether the driver is liquidity or the traditional market cycle, the next bull run could bring significant opportunities for investors.

His advice is clear: pay close attention to the altcoin market, as it may soon offer exciting prospects.

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The future of crypto is looking brighter than ever. Are you ready to ride the wave?