Bitcoin Bull Market Shows Late-Cycle Signs But No Top Yet as Exchange Reserves and Altcoin Capital Rotation Signal Potential Further Growth
Bitcoin (BTC) remains above key support and continues to register record highs in 2025, even as altcoins like Ethereum (ETH) lag all-time highs. Analysts note a shift as Bitcoin’s market dominance weakens, with increasing capital rotation into altcoins. Exchange data shows Bitcoin reserves keep falling—indicating limited selling pressure—while ETH and XRP reserves are steady. Stablecoin reserves on major exchanges are at multi-year highs, signaling investors may be preparing to re-enter the market with new capital rather than exiting. The market value-to-realized value (MVRV) ratio for BTC sits around 2.2, below the historical peak of 3.7, which suggests there’s room for further upside. Trading desks highlight $105,000 as a crucial support; maintaining this level could maintain bullish momentum. While some caution the current crypto bull run may be entering its late phase, on-chain metrics and institutional interest continue to support confidence in both Bitcoin and select altcoins. Traders should track reserve flows and technical support levels closely as market sentiment indicates a late-stage bull market, but not yet a final top.
Bullish
Recent data show Bitcoin holding above crucial support and maintaining record highs, even as altcoins lag. Capital rotation into altcoins, declining BTC reserves on exchanges, and multi-year highs in stablecoin reserves all suggest that investors remain engaged and are ready to deploy fresh capital. The current BTC MVRV ratio is well below historic peaks, indicating there may be more room for upside and no clear sign of a market top. While some caution that the market could be in its late bull-cycle phase, on-chain metrics and continued institutional investment support ongoing bullish sentiment. Traders are advised to watch reserve flows and technical levels, as the broader outlook remains positive unless key supports are breached.