“Such movements are often interpreted as strategic efforts by influential participants to prevent overheating, with the aim of prolonging the bull cycle. Ultimately, this cycle is expected to end with a euphoric phase and the formation of a major speculative bubble,” the CryptoQuant report states.
Analysts highlight that altcoins have significantly underperformed during corrective phases, often failing to meet broader market expectations. These corrections tend to weigh on overall sentiment, though the market has still managed to produce brief rallies in between periods of decline.
In their commentary, CryptoQuant draws historical parallels: In 2017, the market experienced steady gains interspersed with moderate pullbacks, culminating in a 7–8 month correction. By contrast, the 2021 cycle began with a prolonged drop triggered by the pandemic, but was followed by a period of growth with only limited setbacks.
The current cycle stands out for its abrupt downturns after rallies, which analysts interpret as possible “artificial cooling”—a tactic designed to extend the bullish phase, rather than allow the market to overheat too quickly.
Earlier, CryptoQuant reported an absence of widespread euphoria in the crypto market, further supporting the view that the bull cycle’s end may not yet be in sight.