The cryptocurrency market, which started the year with a strong beginning, is now spreading fear with its downward movements.

Some crypto investors think we may have entered a bear market. Others see more price increases in the second half of 2024 following one of the strongest indicators in the history of the Exchange Traded Fund (ETF). This comes despite ongoing inflation and geopolitical tensions in the US, as well as changing policies that could bring cryptocurrencies to the forefront in voters' minds in November.

Crypto analysts are hopeful, but it's still early

Analysts like Matthew Sigel, the head of digital asset research at VanEck, believe that further progress can be made based on historical trends. Sigel recently stated in an investor note, "If the resilience of the current cycle follows previous trends, this could indicate a potential market peak between the 2nd and 4th quarters of 2025."

Sigel said that the crypto market has historically experienced distinct four-year cycles and that significant price peaks usually occurred after halving. The cycles between 2013-2017 and 2017-2021 also followed this trend, and new record levels were reached after each halving. Sigel's analysis suggests that the current market's cooling phase is a harbinger of a new uptrend.

Matt Hougan, Chief Investment Officer of the digital asset manager Bitwise, also predicts that the rise will increase further after the launch of US Ethereum spot ETFs, which some experts believe could happen earlier this month. Hougan said in a note released on Monday that Ethereum ETFs could gather a net flow of $15 billion by the end of 2025.

Referring to investor preferences for "high-growth technology companies" such as Hougan, Nvidia, and Meta, he said, "Investors love technology stocks." "It's quite easy for me to imagine investors selling a small portion of their technological investments and adding ETH."

However, Hougan said that the $15 billion figure would lag behind Bitcoin ETFs. Bitcoin ETFs have raised $14 billion in less than six months, and are expected to exceed $50 billion by the end of 2025. According to some, changing politics inside and outside the US may guide the sector towards clearer regulations.

Cryptocurrency exchange Swyftx's chief market analyst Pav Hundal told Decrypt in a statement that investors don't need to participate in the political change affecting Europe and the US to see what could be more favorable for cryptocurrencies.

This article does not contain investment advice or recommendation. Every investment and trading operation involves risk, and readers should conduct their own research when making decisions.