According to Axel Adler Jr, an analyst at CryptoQuant, the problem in the later stages of a bull market is a decrease in investors' risk appetite. The data shows that the indicator broke through 1.9 in March and December 2024, but it is currently forming a low peak, and holders are actively selling, putting pressure on the market. Although investors are still taking profits, the marginal premium of cost base brought by each new price increase is getting smaller and smaller.
Analysts say that considering that the Federal Reserve is expected to cut interest rates twice this year, there are expected to be two more increases in this cycle, after which selling pressure will exceed demand and the market will enter a correction phase.
