TLDR:
- Bitcoin’s current crypto market cycle shows a slowing uptrend as capital shifts toward altcoins.
- Institutional adoption and spot ETFs are elongating Bitcoin’s market cycle, reducing price volatility.
- Derivatives market activity has dropped, signaling reduced trader confidence in Bitcoin’s short-term moves.
- Ongoing liquidation events highlight Bitcoin’s market volatility amid recent price corrections.
Bitcoin’s price has been fluctuating between $108K and $116K over the past week, marking a notable rise followed by a sharp correction. Currently priced at $110,101, Bitcoin has seen a -2.58% decline in the last 24 hours and a -2.44% drop over the past week.
While short-term corrections are evident, Bitcoin continues to display impressive long-term growth. However, analysts from CryptoQuant and CoinGlass suggest that Bitcoin’s market cycle is entering a new phase, one that could involve extended consolidation before another uptrend.
Crypto Market Cycle Shifts, Slowing Uptrend in Phase 3
The market’s current phase (Phase 3), according to CryptoQuant data, shows signs of a slowing uptrend.
Unlike the earlier phases (1 and 2), where Bitcoin saw sharp rises, the price increase now is less steep. This change is largely attributed to the increased adoption of Bitcoin by institutions and nations, as well as the introduction of spot ETFs.
Crypto Market Cycle Slows, Uptrend Expected in Fall 2025
“Looking at the percentage of Bitcoin held for over a year (based on realized market cap), past cycles (Phase 1 and 2) show that the market surged sharply and reached its peak.
However, in the current phase (3), the slope… pic.twitter.com/jTL139wa8c
— CryptoQuant.com (@cryptoquant_com) August 29, 2025
These factors are elongating the market cycle, leading to a more gradual rise.
Additionally, whenever capital begins to flow into altcoins, the overall market momentum tends to stall. This pattern has been evident in recent cycles, and it highlights a shift from the period of Bitcoin dominance seen in 2023-2024 to growing capital interest in altcoins.
While Bitcoin’s dominance was clear in the last market phase, the attention has now begun to shift toward altcoins. As investors turn their focus to altcoins, Bitcoin’s short-term upward momentum seems to have stalled.
The expected approval of spot ETFs for altcoins, alongside the potential rate cut in September, may further influence this shift. As a result, Bitcoin’s price movements could remain less volatile in the immediate future, with an optimistic outlook for fall and winter 2025 following the current consolidation phase.
Decline in Derivatives Market Activity
Bitcoin’s derivatives market has also experienced a reduction in activity. Key metrics, such as trading volume and open interest, have declined. Trading volume dropped by 5.17%, while open interest decreased by 2.45%.
In particular, options volume saw a more significant drop of 13.48%, with options open interest falling by 21.69%. This decline signals a reduction in market enthusiasm, with traders showing increased caution.
Despite this, some exchanges, like Binance and OKX, reveal a higher long-to-short ratio, indicating that traders on these platforms remain optimistic about Bitcoin’s future price movements. Notably, Binance’s BTC/USDT pair saw a long-to-short ratio of 1.81, suggesting confidence in a potential recovery despite broader market trends.
The volatility in Bitcoin’s derivatives market is further underscored by recent liquidation events. Over the past hour, $16.30 million was liquidated, with most of it coming from long positions.
Additionally, over the past 12 hours, $58.55 million in liquidations occurred, with long positions again representing the majority.
The post Crypto Market Cycle Slowed But Bitcoin Uptrend Expected in Fall 2025: CryptoQuant appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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