Real Vision’s chief digital assets analyst Jamie Coutts states that a bottom may be forming in the crypto market after a decline lasting several weeks. Coutts informs his 33,800 followers on the social media platform X that, based on a metric tracking the performance of crypto assets over the past 365 days, the market is preparing for a bullish reversal.
“This month’s crypto flush resulted in the highest 365-day new low (NL) reading since mid-2024. While this is not a definitive bottom signal, it suggests that a bottom is forming. Focus on assets that outperformed over the past year and during this recent pullback. Their strength hints at what’s to come in the next phase of this cyclical bull market.” He also shares the TOTAL2 chart – which represents the market cap of all crypto assets excluding Bitcoin (BTC) and stablecoins – indicating a potential reversal forming on the daily timeframe following a downtrend.
Source: Jamie Coutts/X
TOTAL2 is valued at $1.24 trillion at the time of writing. Next, Coutts suggests that Bitcoin may be breaking its historic inverse correlation with the US dollar index (DXY), which measures the USD against a basket of other major foreign currencies, as more investors may be viewing the flagship crypto asset as a safe-haven asset akin to gold.
“Bitcoin’s inverse correlation with the dollar broken? Since the September low, BTC surged from $70,000 to $110,000 while the DXY climbed from 104 to 110. Is it ETFs (exchange-traded funds), MSTR (MicroStrategy), sovereigns? Hard to say. Maybe Bitcoin is finally being recognized as the safe harbor asset it was destined to be.”
Source: Jamie Coutts/X
He also notes that the adoption of blockchain technology is surging, as evidenced by the metric of daily active addresses (DAAs) on smart contract platforms (SCPs).
“Liquidity drives on-chain activity – always has. But since 2022, that relationship has weakened. Blockchain adoption is proving more resilient and less tethered to liquidity cycles. Over the past year, active addresses have tripled while markets remain their usual schizophrenic selves, debating where liquidity is headed next. But here’s the thing: the tech is hitting escape velocity. Zoom out. Both liquidity and blockchain usage are in long-term uptrends. The only question that matters – will they be higher in one, three, or five years?”
Source: Jamie Coutts/X
Lastly, he predicts that 2025 will see a significant explosion in blockchain technology adoption across several sectors.
“In 2025, we will likely see on-chain perpetual volumes exceeding $4 trillion. What happens when RWAs (real-world assets) land en masse—stocks, commodities, bonds, and KYC (Know Your Customer) solutions allowing institutions to participate? Which chains and protocols do you think will benefit most from what is about to happen?”
Source: Jamie Coutts/X
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