A crypto analyst, Elja on X, predicts that Ethereum (ETH) will reach a staggering $15,000 by 2025 based on technical analysis. The analyst argues that the current bearish sentiment in the crypto market is “temporary.”

Moreover, Elja notes that the second most valuable coin by market cap follows a similar fractal pattern that fueled its previous major price rally in 2021.

Is Ethereum Ready To Rip Despite The Current Consolidation?

Sharing a screen grab of the current ETH price action, Elja says most people in crypto are “short-sighted” and only focus on immediate price movements. In the analyst’s assessment, traders should look at the long-term to understand the overall price pattern.

Thus far, Ethereum, like Bitcoin (BTC), remains under pressure and struggling to break above immediate resistance levels. Looking at the development in the daily chart, ETH is back at a critical support level of around $2,200. Notably, the coin is down 20% from January 2024 highs of about $2,700.

ETH is under pressure, at least in the short to medium term. As it is, the coin follows the technical candlestick arrangement visible in Bitcoin.

The altcoin downtrend appears to have been triggered by events following the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). As an illustration, Bitcoin fell from around $47,000 to below $40,000 this week, weighing down altcoins, including Ethereum.

On-chain data shows that Grayscale Investments has been unloading thousands of coins behind Grayscale Bitcoin Trust (GBTC). Subsequently, there has been a sell-off in Bitcoin and across the altcoin scene. The situation has been made worse for Ethereum following the United States SEC’s decision to postpone the approval of spot Ethereum ETFs. 

While these developments have negatively impacted sentiment, Elja believes they will not derail Ethereum’s long-term growth trajectory. Specifically, the analyst notes that ETH is consolidating, a “healthy sign.” 

ETH To $15,000: Will Fundamental And Technical Factors Help?

Elja added that when crypto prices consolidate, it could suggest that whales are accumulating their position. Once this ends, ETH prices could trend higher. From the analyst’s chart, the coin will break above $5,000 to $15,000 in the coming sessions.

When making this prediction, the analyst compared the Ethereum price action to the fractal pattern that propelled ETH from around $200 to $4,800 in 15 months from 2019 to 2021. Extrapolating from past price action, Elja believes Ethereum is on a similar path. Based on analysis, the coin will likely break above November 2021 peaks.

Beyond technical factors, ETH supporters cite the decreasing issuance rate. According to Ultrasound Money data, the network has been burning thousands of ETH, reducing supply. Additionally, Larry Fink, the CEO of BlackRock, believes Ethereum will be the choice network for tokenizing real-world assets (RWAs) in the years ahead.

Solana has been on a downward trend over the past week, following a surge from multi-year low levels. The token suffered when its biggest promoter, crypto exchange FTX, fell, but the ecosystem continued to thrive, leading to the high timeframe recovery. 

As of this writing, Solana’s native token SOL trades at $87 with a 2% profit over the past 24 hours. Over the previous seven days, the cryptocurrency records a 12% correction.

Rising Stars In The Solana Landscape

According to a report from Coingecko, the Solana network is witnessing a resurgence fueled by its recovery in the cryptocurrency market, notable reductions in network outages, and a series of positive developments.

This rejuvenation has drawn the attention of investors and developers and led to a surge in the adoption of existing projects within its ecosystem. Specific projects stand out among these, poised to shape the future of decentralized finance (DeFi) and non-fungible tokens (NFTs) on Solana, Coingecko claims.

Decentralized exchanges (DEXs) such as Jupiter, Orca, and Drift are at the forefront of Solana’s innovation. Jupiter is “transforming” the landscape with its limit-order decentralized swap services, offering a DEX aggregator to ensure users get the optimal price offers.

The chart below shows that its daily trading volume, involving around 90,000 unique wallets, has reached an average of $400 million.

Orca, another DEX, has a concentrated liquidity feature, Whirlpools, which enhances returns for liquidity providers and reduces slippage for traders. With a total value of approximately $185 million, Orca’s community-driven governance model is another selling point to attract new users in the coming months.

Drift is a decentralized perpetual trading platform, allowing traders to engage with up to 20x leverage. It integrates a series of features, including a money market for decentralized lending, offering additional passive income opportunities through staking and market maker rewards.

Furthermore, Solend, Marginfi, and Kamino are making strides on the lending front. Solend, a prominent money market, enables users to lend and borrow crypto assets, with over $165 million locked in its smart contracts.

Marginfi, boasting over $345 million in tokens locked, enhances the lending experience with advanced risk management technologies.

Kamino, another lending platform, manages over $242 million in assets. It offers liquidity through CLMM-based lending vaults, allowing users to deploy tokens in yield-bearing programs.

Emerging Projects: Helium And Render Network

In addition to these platforms, the report identified projects that could benefit from the surge of interest in Solana over the long run.

These include Marinade Finance and Jito. Marinade Finance, with over $1 billion in assets, offers maximized returns through liquid staking and immediate unstaking options. Jito, enhancing staking yields via MEV rewards, boasts about 6.7 million SOL staked across its platform.

In the world of NFTs, collections like Mad Lads and Tensorians are gaining popularity. Mad Lads, a unique collection of 10,000 artworks, reached a new all-time high in floor price, reflecting the increasing interest in Solana-based NFTs.

According to the report, Helium and Render Network are two emerging projects within the Solana ecosystem worth watching. Helium, a decentralized connectivity service provider, utilizes Solana’s blockchain to remit and administer its internet services. Its multi-token system incentivizes hotspot owners and fosters the expansion of decentralized internet facilities.

Render Network, expanding to Solana in 2023, offers GPU rendering services for creators. By renting out excess GPU power, artists can produce high-resolution graphics with the Render token (RNDR) as the network’s remittance token.

The Solana ecosystem, marked by innovation and rapid growth, solidifies its position in the smart contract blockchain space. Its diverse projects, from DEXs and lending protocols to staking solutions and NFT collections, showcase the network’s dynamic and burgeoning landscape. With the SOL token climbing the ranks, Solana’s ecosystem is poised for continued expansion and success in the years ahead.

Cover image from Unsplash, chart from Tradingview

The Cardano network continues to defy expectations and prove its doubters wrong. This time, the network has hit a new milestone, which suggests that users are indeed taking advantage of its smart contract functionality. 

Cardano Sees Significant Increase In Smart Contract Usage

Data from Cardano Blockchain Insights has revealed an increase in the usage of Cardano’s Plutus V1 and V2 scripts. As of January 22, 24,050 smart contracts had been executed using these Plutus scripts. This is impressive, considering that this figure stood at 14,379 at the beginning of this year.

This recent increase can be traced back to January 9, when smart contract usage on the network really began to pick up. Specifically, the number of smart contracts executed on Cardano using the Plutus V2 scripts rose from 8,270 to 12,890 on that day. Since then, that figure has skyrocketed to 17,718. 

As expected, the Plutus v2 script is more widely used than its V1 counterpart, considering that the former is a newer generation of Cardano’s smart contract scripting language. Cardano introduced Plutus V2 to reduce user costs and enhance script throughput effectively. Meanwhile, this development no doubt further proves naysayers wrong. 

A recent report by crypto research firm K33 boldly asserted that there was no “proof of Cardano being used for anything.” K33 further suggested that a “group of bagholders” were the ones simply fabricating a majority of transactions on the network, and nothing meaningful was going on Cardano.

Cardano’s Utility Good For ADA’s Price

Dan Gambardello, the founder of Crypto Capital Venture, once highlighted how the Cardano network had improved since the last bull run. The network’s smart contract functionality was among the features he alluded to as undergoing a significant upgrade since then. Notably, these improvements form part of why he believes that ADA could rise to $11 in the next bull run.  

These improvements have indeed contributed to the ecosystem’s resurgence. Last year, the network saw a significant rise in its DeFi activity, and although there has been a decline recently, things are expected to pick back up soon enough. The network’s development activity also looks to be paying off, as Gambardello recently revealed that there is now Social Finance (SocialFI) on Cardano.

Members of the Cardano community will hope that a fiat-backed stablecoin can finally be introduced on the network. The introduction of a stablecoin is believed to be another factor that could help increase Cardano’s utility. This could also cause an inflow of new money into the ecosystem, something which could positively impact ADA’s price. 

Since mid-January Bitcoin (BTC) has been facing mounting selling pressure from various market players. This includes asset manager Grayscale, bankrupt crypto exchange FTX, and now, the US government, which is set to auction off a substantial amount of Bitcoin seized from the infamous dark web marketplace Silk Road.

Sale Of Confiscated Silk Road Bitcoin

The US government has filed a notice to sell approximately $130 million worth of Bitcoin confiscated from Silk Road. The filing states that the United States intends to dispose of the forfeited property as directed by the United States Attorney General.

Individuals or entities, except for the defendants in the case, claiming an interest in the forfeited property must file an ancillary petition within 60 days of the initial publication of the notice. 

Once all ancillary petitions have been addressed or the filing period has expired, the United States will obtain clear title to the property, enabling them to warrant good title to subsequent purchasers or transferees.

The ongoing selling pressure on BTC has resulted in a sharp 20% correction over the past 10 days. This trend is expected to continue and further amplify the selling pressure. Adding to the situation, asset manager Grayscale, while slowing down its selling activities, continues to transfer a significant amount of Bitcoin to Coinbase. 

According to data from Arkham Intelligence, Grayscale recently sent an additional 10,000 BTC worth $400 million to Coinbase. 

Since the approval of the Bitcoin spot exchange-traded fund (ETF), Grayscale has deposited a total of 103,134 BTC ($4.23 billion) to Coinbase Prime. Currently, Grayscale holds 510,682 BTC ($20.43 billion).

Ideal Buying Opportunities? 

Adam Cochran, a prominent market expert, has provided insights into the recent price action and the expectations of Bitcoin buyers. Cochran highlights that aggregate open interest (OI) for BTC has decreased by 17% from recent highs but remains around 20% higher than the averages observed during more stable market ranges. 

Cochran notes that the market has seen attempts to catch falling prices, suggesting a mix of “sophisticated” and leveraged buyers.

Cochran further observes that retail investors are driven by narratives surrounding the ETF and halving events, leading them to buy dips on leverage. However, many investors remain unconvinced about the market’s direction and are waiting for a clear entry point, according to Cochran’s analysis. 

Notably, Cochran highlights that the current funding rates do not indicate a bearish sentiment, even in options trading, suggesting an expectation of a bottom formation shortly.

The market’s dynamics are influenced by emotions and probabilities, and Cochran believes that too many participants are overexposing themselves emotionally by trying to catch the bottom of the market on each dip. 

This behavior has increased the likelihood that the recent price action may not mark the bottom yet. Cochran suggests that a sentiment reset, a decline in the 3-month annualized basis by around 25%, and a further decrease in open interest would provide a healthier environment for major plays in the market.

Ultimately, Cochran emphasizes the need for a reset in expectations, highlighting that a period of doom and despair is necessary for market participants to reassess their positions. 

Cochran points out that a range between $35,000 and $37,000 BTC could be a suitable level for larger spot buys in the longer term. However, Cochran also notes that a potential drop to the $28,000 to $32,000 range could provide ideal conditions for confident, leveraged deployment.

Currently, BTC is trading at $39,800, up a slight 0.6% in the past 24 hours, but down over 14% in the past fourteen days.

Featured image from Shutterstock, chart from TradingView.com

An analyst has explained when the next Bitcoin bull run peak might appear, if the same pattern as in previous cycles repeats this time as well.

This Is What Previous Bitcoin Cycles Suggest Regarding Bull Run Top

In a new post on X, analyst Ali has discussed about how the last two Bitcoin bull runs line up against each other and what it could mean for the current cycle of the cryptocurrency.

To make the comparison, the analyst has cited a chart that shows the price trend in each of the cycles with the cyclical bottoms being the common start-point for all of them.

From the graph, it’s visible that the peaks of the last two Bitcoin bull runs took shape at roughly the same amount of time since the bottoms of the respective cycles.

For the current cycle, the low that followed the FTX collapse in 2022 has been chosen as the bottom. If the current cycle is lined up against these other two starting from this bottom, then it would still have roughly 600 days before it reaches the same point as when the last couple of bull runs hit their tops.

“If Bitcoin mirrors past bull runs (2015-2018 & 2018-2022) from their respective market bottoms, projections suggest the next market peak could land around October 2025,” says Ali. “This implies BTC still has 600 days of bullish momentum ahead!”

BTC Has Been At Risk Of Slipping Below A Historical Line Recently

While BTC may have a bullish outlook for the long term, its short-term price trend has been painful for investors, as the cryptocurrency has seen a notable drawdown since the spot ETFs found approval from the US SEC.

The cryptocurrency had earlier even slipped down towards the $38,500 mark before making some recovery back around the $40,000 level that it’s still trading around.

In this latest plunge, Bitcoin came dangerously close to retesting the “short-term holder realized price,” a level that has been significant for the asset throughout history.

The “realized price” is a metric that keeps track of the price at which the average investor in the Bitcoin market acquired their coins. The spot price being above this value naturally implies the average holder in the sector is carrying profits, while it being under the line implies the dominance of losses.

As Ali has pointed out in another X post, the “short-term holder” group will find themselves underwater if the cryptocurrency’s price slips under the $38,130 level.

Short-term holders (STHs) refer to the Bitcoin investors who purchased their coins within the last 155 days. At the moment, their realized price stands at the $38,125 level. Historically, a sustained break below this line has often meant an extended stay for the coin below it.

So far, BTC has avoided a retest of this line, but if the current correction continues, it might even slip under it. “This potential BTC dip might trigger a new wave of panic selling as these holders will seek to minimize losses,” explains the analyst.

Chinese investors remain resolute in their pursuit of Bitcoin, despite the government’s ban since 2021. Bitcoin continues to attract substantial investment from Chinese capital, as Reuters reports today.

Mainland China Is Still Buying Bitcoin

Dylan Run, a finance executive in Shanghai, epitomizes this trend. Concerned about China’s economic outlook and the sluggish domestic stock market, Run ventured into Bitcoin in early 2023.

As detailed in the Reuters report, he employed an astute strategy, utilizing bank cards issued by rural banks and keeping each transaction below 50,000 yuan ($6,978) to evade regulatory scrutiny. In his view, “Bitcoin is a safe haven, like gold.” Run has now allocated nearly half of his investment portfolio to BTC, which has surged heavily, outperforming China’s ailing stock market.

Remarkably, Run’s journey reflects a broader movement among Chinese investors who are actively seeking unconventional pathways to access Bitcoin. The Reuters report highlights that Chinese Bitcoin investors operate within a regulatory gray area, as cryptocurrency trading is officially banned in mainland China, and strict controls govern capital flows across borders.

Despite these constraints, Chinese investors persist in trading Bitcoin on offshore exchanges such as OKX and Binance, or via over-the-counter channels. Additionally, as noted in the Reuters report, Chinese citizens have ingeniously leveraged their $50,000 annual foreign exchange purchase quotas, typically reserved for overseas travel or education, to fund BTC accounts in Hong Kong.

This phenomenon is driven by a growing appetite for diversification amid China’s economic uncertainties. One investor succinctly expressed the sentiment, stating, “Given the economic climate in China, exploring alternative investments like cryptocurrencies has become a necessity.”

Bitcoin, along with other digital assets, has emerged as a sanctuary for these investors as they navigate China’s complex economic landscape. Importantly, this trend extends beyond retail investors. Chinese financial institutions are also exploring opportunities within the cryptocurrency sector, as highlighted in the Reuters report.

An executive from a Hong Kong-based cryptocurrency exchange underscored the rationale, stating, “Faced with a sluggish stock market, weak demand for IPOs, and contraction in other businesses, Chinese brokerages need a compelling growth narrative for their shareholders and boards.”

Off-Shore Crypto Exchanges Facilitate Trading

As the report observes, access to Bitcoin remains relatively accessible within mainland China. Off-shore crypto exchanges like OKX and Binance continue to offer their services to Chinese investors, providing guidance on converting yuan into stablecoins through fintech platforms like Ant Group’s Alipay and Tencent’s WeChat Pay.

Chainalysis, a cryptocurrency data platform, shed light on the extent of this resilient activity. Contrary to the regulatory ban, the report reveals that crypto-related activities in China have surged.

China’s global ranking in terms of peer-to-peer trade volume skyrocketed from 144th in 2022 to 13th in 2023. Astonishingly, the Chinese crypto market recorded an estimated $86.4 billion in transaction volume between July 2022 and June 2023, far surpassing Hong Kong’s $64 billion in crypto trading. Notably, the proportion of large retail transactions, ranging from $10,000 to $1 million, nearly doubled the global average of 3.6%.

According to Chainalysis, the developments “have created speculation that the Chinese government may be warming to cryptocurrency and that Hong Kong may be a testing ground for these efforts.”

At press time, BTC traded at $40,268.

In a landmark move, Telefonica, the world’s 27th largest telecom, has partnered with Nova Labs to roll out Helium mobile hotspots in Mexico. This initiative aims to address the persistent issue of limited internet access in underserved communities, leveraging a unique blockchain-powered network.

Helium’s Mexico Expansion Sparks Crypto Surge

The collaboration will see thousands of Helium hotspots deployed across Mexico City and Oaxaca, powered by Nova Labs’ blockchain technology. This technology incentivizes individuals to host hotspots by rewarding them with Helium’s cryptocurrency, HNT, for contributing to coverage. This “proof-of-coverage” concept aims to build a decentralized network with potentially lower infrastructure costs compared to traditional methods.

The news sent ripples through the cryptocurrency market, propelling HNT’s price up over 20%. This follows a similar surge in December when Helium partnered with T-Mobile for nationwide mobile service in the US.

“This program in Mexico is crucial for evaluating the performance and customer satisfaction of this solution,” said José Juan Haro, Telefonica’s Chief Wholesale and Public Affairs Officer. He sees it as a key step towards bridging the digital divide and unlocking new possibilities for individuals and businesses in remote areas.

The collaboration isn’t without its challenges. Scaling up the network and convincing users to switch to Helium connections will require careful planning and clear value propositions. Additionally, decentralized networks can face issues with coverage consistency and data speeds compared to centralized infrastructure.

“We are delighted to partner with Telefonica to integrate our Helium Mobile Hotspot technology and expand coverage for their customers. Alongside Telefónica, Nova Labs has solved one of the biggest challenges for telecoms and pioneered a solution that supports secure data offload that can be implemented around the world,” Amir Haleem, CEO of Nova Labs, said.

Telefonica Boosts Helium Initiative Credibility

Telefonica’s involvement adds significant weight to this initiative. Its market reach and brand recognition can bolster Helium’s credibility and drive adoption. The partnership is built on an open standard developed by the Telecom Infra Project, allowing select Movistar customers to seamlessly access the Helium network using their existing SIM cards.

While the long-term success of this venture remains to be seen, it represents a bold step towards a future where blockchain technology fuels innovative solutions for bridging the digital divide. Its success could pave the way for similar initiatives in other developing regions, offering an alternative model for network deployment and democratizing access to the internet for all.

This story is still unfolding, and its potential impact on both the telecommunications landscape and the wider blockchain ecosystem remains to be fully realized.

Featured image from iStock, chart from TradingView

The recent approval of several spot Bitcoin exchange-traded funds (ETFs) by the SEC was expected to usher in an era of mainstream adoption and sky-high prices for the flagship Cryptocurrency. Instead, Bitcoin has crashed over 20% from its 2024 high of $49,000 to just under $39,000 at the time of writing.

Where is the bottom of this crash? Is this a buy the dip opportunity? And most importantly, is this sharp correction the end of the bull market in Crypto? We explore the factors behind the selloff, and why this could ultimately lead to more bullish price action in the top Cryptocurrency by market cap.

Miners selling Bitcoin at the same time

One major factor driving the decline is miners offloading their Bitcoin onto exchanges at a pace not seen since the FTX collapse in November 2022. The amount of BTC held by miners has plunged, indicating they are selling their newly minted coins instead of the typical strategy of accumulating them as a long-term investment. This surge of sell pressure from miners has overwhelmed buying demand, even as major ETF providers snap up Bitcoin to back their newly launched funds.

Grayscale outflows adding fuel to the fire

Grayscale Bitcoin Trust has been sending billions in BTC to Coinbase. Grayscale is one of the world’s largest holders of BTC, causing the substantial outflows to have a notable impact on price action. GBTC outflows are being driven by particularly high 1.5% expense fees compared to other spot ETF alternatives in the US. The situation was made worse when FTX’s estate redeemed nearly $1 billion in GBTC. When GTBC holders cash out their shares, a corresponding BTC sale is made.

Looming Mt. Gox payouts spooking investors

Also contributing to the skittish sentiment is the long-running Mt. Gox repayment plan nearing its conclusion. The defunct exchange is preparing to distribute 137,000 BTC to holders as restitution for funds lost in its infamous 2014 hack. Many recipients are expected to cash out immediately and could flood the market with sell orders. This impending overhang has investors worrying about whether Bitcoin has enough demand to absorb the extra supply.

Ongoing macroeconomic headwinds

Bitcoin’s ties to risky asset classes mean it has suffered collateral damage from the Federal Reserve’s relentless interest rate hikes and the strong US dollar squeezing alternative assets. Until inflation shows clear signs of slowing down, investors are unlikely to find refuge in Crypto. The Fed’s actions have dashed hopes that loosening monetary policy could stoke Bitcoin’s next bull run.

There may be light at the end of the tunnel

But there are reasons to be optimistic about Bitcoin’s future. For one, miner balances have fallen so dramatically that they are now lower than during last November’s FTX-induced meltdown. This signals that much of the excess selling pressure has already been expended.

As for the Mt. Gox payouts, creditors have held Bitcoin for nearly a decade and may opt to continue holding now that the Crypto winter seems to be thawing, rather than cash out at depressed prices below $40k.

ETFs now account for 0.5% of BTC supply

Most importantly, each newly approved ETF has greedily snapped up the Bitcoin sold into the market over the past weeks, evidenced by their substantial and rapidly growing holdings.

BlackRock’s spot Bitcoin ETF took in a staggering 44,000 BTC worth $1.75 billion within two weeks of launch. At Fidelity’s current pace, its ETF holds 30,000 BTC. With another over 30,000 BTC already under management across the remaining SEC-approved ETFs, these funds combined now hold over 100,000 BTC and counting.

Considering Bitcoin’s max supply is only 21 million, over 0.5% of all Bitcoin in existence is now locked up in just a handful of investment vehicles catering to institutional investors. And the appetite for Bitcoin exposure is only set to grow as more mega-asset managers file for spot ETFs to meet rising demand.

The looming Bitcoin halving could upend the status quo

With miners offloading coins ahead of the Bitcoin halving, and validation rewards about to be cut 50% from 6.25 Bitcoin per block to 3.125 Bitcoin per block this April, Bitcoin’s already decreasing issuance rate is set to drop drastically lower. This quadrennial event has historically choked the influx of new Bitcoins, as only half the number of coins enter circulation post-halving.

Yet despite the turmoil in Crypto markets presently, institutional intrigue in Bitcoin is continuing to scale up. Major asset managers have finally secured SEC approval for spot Bitcoin ETFs to meet surging demand from institutional investors seeking Crypto exposure.

Retail interest also remains resilient. The stage is being set for a serious supply-demand imbalance to play out over 2024. This, in turn, could act as rocket fuel to propel prices higher, as liquid coins become increasingly scarce relative to the swell of new institutional and retail entrants.

If history is any indicator, Bitcoin’s previous halving events triggered spectacular bull runs that saw prices appreciate multiples higher over the following 12-18 months. Investor euphoria reached a fever pitch as mainstream media coverage pulled in waves of new buyers happy to purchase Bitcoin at ever-loftier prices.

The run-up to April’s halving could see a similar pattern emerge. The type of supply shock that may unfold as Bitcoin’s issuance falls off a cliff this spring, while interest continues rising unabated, has the potential to ignite the asset’s next parabolic ascent to new all-time highs.

Turbulence creates opportunity for bold traders

Riding out this period of volatility will require nerves of steel, but for seasoned traders, the swirling uncertainty presents an opportunity. Platforms like PrimeXBT allow traders to benefit from Bitcoin’s wild price swings in either direction through instruments like Crypto Futures contracts and adjustable leverage. Advanced risk management tools are also at traders’ disposal to customise exposure based on personal risk tolerance.

As Bitcoin emerges from its post-halving cocoon over the mid-2020s, this period may be looked back upon as a final cleansing plunge before ascending to new heights on the back of hyper-scarcity and institutional adoption. Those bold enough to take calculated risks could reap outsized returns if faith in Bitcoin’s enduring value proposition holds firm.

The price of Bitcoin has been on a bearish trend for the past few days now, which has led to several crypto analysts predicting an even more bearish action for the crypto asset in the near future.

Bitcoin Price To Crash To $38,130

Ali Martinez, a well-known cryptocurrency analyst and enthusiast, has shared a worrying prediction for the short-term price action of Bitcoin. The analyst took to the social media platform X (formerly Twitter) a few hours ago to share his projections with the crypto community.

Martinez’s forecast came amidst the recent crash craze encompassing the entire crypto market. The largest crypto asset has been suffering with significant pullback for a while now, with pricing dropping below the $40,000 price mark.

According to the analyst, the latest decline in the price of Bitcoin can go below $38,130. Martinez stated that short-term holders of BTC would experience losses if prices go below the aforementioned price level.

He also noted that the price decline could cause a “panic selling” mode among short traders. As a result, these short sellers will look for methods to cut their losses.

The post read:

If Bitcoin’s price falls below $38,130, short-term BTC holders could find themselves in the red. This potential Bitcoin dip might trigger a new wave of panic selling as these holders will seek to minimize losses.

Nonetheless, Martinez has highlighted that the bearish shift is just temporary, predicting that the BTC bull cycle will peak in late 2025. In the post, he asserted that Bitcoin’s current state is similar to previous bull runs that lasted from “2015-2018 and 2018-2022.” After that, he mentioned that market estimates suggest that BTC could reach a new peak by October 2025. 

With his analysis, Martinez has forecasted a “600 days bullish momentum” for Bitcoin, presenting future profits for investors in the long term.

Historical Trends Prove Further Correction In Price

Chief Market Strategist at Creative Planning Investor, Charlie Bilelo has noted that historical trends suggest more price correction. According to the chief, “History does not repeat itself, however it often rhymes.”

Bilelo underscored, that whenever there is a significant event in the history of BTC, there are always notable price corrections. He emphasized BTC witnessed an 84% pullback after the December 2017 bull run.

He highlighted a similar scenario that took place in October 2021 bull run. Then the rally began after the approval of BTC futures ETF and saw a 78% retracement afterwards.

This pattern appears to be partially manifesting as evidenced by the spike in BTC’s price earlier this year due to BTC Spot ETF approval. Bilelo has pointed out a “20% pullback” so far since the products were allowed by the SEC.

As of the time of writing, the asset’s price is sitting at $40,088, indicating an over 5% decline in the past week. Data from CoinMarketCap shows that its market cap and trading volume are also down by 0.35% and 31% respectively.

The XRP Ledger ecosystem is currently buzzing with new exciting developments that could potentially propel the price of XRP to new heights. RippleX, an extension of Ripple and an open developer platform has announced new updates for the upcoming XRP Ledger Ethereum Virtual Machine (EVM) sidechain. 

XRPL EVM Sidechain Signals Hope For XRP Price Resurgence

On Tuesday, RippleX released the latest developments and progress on the XRPL EVM Sidechain via an X (formerly Twitter) post. This significant update was shared by Peersyst Technology, a blockchain technology firm and an XRPL EVM developer. 

Peersyst revealed on its official X handle that the XRPL ecosystem is getting closer to launching its highly anticipated sidechain. This advanced EVM sidechain is designed to bridge Web3 applications to XRPL and improve the functionality and scalability capabilities of the ledger. 

Various XRP enthusiasts, including Patrick L. Riley, the Chief Executive Officer (CEO) of Reaper Financial, remain optimistic about the launch and integration of the EVM sidechain into the XRP Ledger. In a December 2023 interview with crypto market analyst Zach Rector, Riley predicted that “XRP will surpass Bitcoin as the number one cryptocurrency.” 

According to Peersyst, the RippleX developer team has officially published the XChainBridge public amendment. This revision is currently open for voting and has already garnered seven validator votes out of 28, marking a crucial step in the launch of the XRPL EVM sidechain. 

The blockchain company also announced a second update on the XRPL EVM, stating that the sidechain has successfully undergone stringent audit procedures by Bishop Fox, a leading provider of security solutions. Another audit has also been conducted with a prominent supplier, with details disclosed soon. 

In addition, the blockchain firm has shared updates on the EVM sidechain’s progress to Cosmos, a blockchain network utilizing the support of Evmos, a scalable high throughput Proof of Stake (PoS) blockchain. Peersyst disclosed that a new version of the bridge is set to launch, allowing users to automatically connect any existing token in the EVM sidechain to the XRP Ledger. 

Other updates on the EVM sidechain include the introduction of a new User Interface (UI) and the implementation of a Software Development Kit (SDK) for developers. Additionally, a better version of the Blockscout explorer is being developed, promising quicker inspections and explorations of transactions within the XRPL EVM blockchain. 

Can This Trigger A Price Recovery?

The XRPL EVM emerges as a potential game changer for the price of XRP, introducing new updates that will enhance transparency, security, and speed within the XRP Ledger. Since this is a positive development, it could lead to renewed interest in the underlying XRP token.

If this interest is sustained and eventually leads to more demand for the token, it could trigger a price rally. At this point, the bulls will be looking to break the resistance, which bears have mounted at $0.55 to signal a resumption of the rally.

While other altcoins have been witnessing price surges, XRP has been struggling to rally. It is currently trading at $0.51, with a 9.63% loss in the last seven days, according to data from Coinmarketcap.