As the year comes to a close, cryptocurrency investors and enthusiasts are certainly keeping their eyes on the future and what the digital asset market will look like in the coming years. Despite a slow start to the year, the final months of 2023 looked favorable to the cryptocurrency landscape and the bull cycle seemed to be in full swing.
There has been widespread commentary about the potential of an ongoing bull market and how this could impact the cryptocurrency market. A cryptocurrency researcher who goes by the pseudonym Ether NasyonaL is one of the latest entities to discuss the current cycle and future trajectory.
Total Market Capitalization Will Reach $8 Trillion by 2025: Analyst
In a recent post on the X platform, cryptocurrency analyst Ether NasyonaL made some interesting predictions for the digital asset market over the next few years. According to experts, the total market capitalization of cryptocurrencies could reach $8 trillion by 2025.
This bullish forecast is based on candlestick formations on the weekly time frame over various market cycles over the past 10 years. Ether NasyonaL has identified three bull cycles since 2015, with the third still in its early stages.
A chart showing various market cycles from 2015 to date | Source: EtherNasyonaL/X
Using the chart above, the analyst observed that between January 2015 and January 2018, 155 candlestick bars were processed from the lowest point to the local high point. During this bullish period, total market capitalization reached peaks of over $740 billion.
Meanwhile, Ether NasyonaL discovered that between December 2018 and November 2021, 152 candlestick bars were processed from lows to local highs. In particular, investors saw the cryptocurrency market cap reach $3 trillion during the peak of this bull cycle.
Based on historical analysis of the last two cycles, NasyonaL believes that similar 150+ bullish candle patterns are likely to emerge starting from November 2022 and ending in October 2025. Bottom. This outlook suggests that the current bull market will continue for quite some time.
And a bullish cycle could potentially push the market capitalization to an unprecedented $8 trillion, according to analyst estimates. This growth represents a nearly 400% increase over the current valuation of the cryptocurrency market.
Cryptocurrency market capitalization in 2023
As the cryptocurrency winter of 2022 begins, digital asset markets have started 2023 well below $1 billion in valuation. However, the market has picked up pace over the years, thanks to the resurgence of Bitcoin, the sector’s biggest asset.
As of this writing, the total cryptocurrency market cap is $1.612 trillion. According to data from TradingView, this number has increased by a whopping 113% over the past 12 months.
The total cryptocurrency market cap at $1.621 trillion on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from iStock, chart from TradingView