In a fascinating turn of events, the crypto market is exhibiting signs that a bottom may be taking shape after several weeks of declines, according to Real Vision’s chief digital assets analyst, Jamie Coutts. The market has caught the attention of investors and enthusiasts alike, eager to discern whether this could be the commencement of a significant bullish phase.
Jamie Coutts shares his analysis with 33,800 followers on the social media platform X, pointing to a critical metric that tracks the performance of crypto assets over 365 days. The recent reading of this metric has reached a peak since mid-2024, signaling a potential bottoming out of the market. Although not a conclusive indicator, this metric suggests the market may be readying for a bullish reversal. Coutts advises focusing on crypto assets that have demonstrated strong performance over the past year and during the recent downturn, hinting at their continued strength in the impending bullish market cycle.
Coutts also sheds light on the TOTAL2 chart, encapsulating the market cap of all crypto assets excluding Bitcoin and stablecoins. He highlights a potential reversal pattern forming on the daily timeframe after an extended downtrend. At the time of writing, TOTAL2 stands at a valuation of $1.24 trillion.
In a parallel development, Coutts notes a potential paradigm shift in Bitcoin’s behavior as it appears to break its historic inverse correlation with the US dollar index (DXY). This divergence may indicate a growing perception of Bitcoin as a safe-haven asset akin to gold. As BTC surged from $70,000 to $110,000, even as the DXY climbed, it prompts speculation that institutional influences such as ETFs and MicroStrategy, or even sovereign entities, could be recognizing Bitcoin’s safe-haven potential.
Furthermore, Coutts observes a monumental increase in blockchain adoption, indicated by the metric of daily active addresses on smart contract platforms. Despite the traditionally tight link between liquidity and on-chain activity having weakened since 2022, blockchain technology continues to gain traction. Active addresses have tripled over the past year, suggesting that both liquidity and blockchain usage are in sustainable long-term uptrends.
Looking forward to 2025, Coutts predicts a surge in blockchain adoption across various sectors. He foresees on-chain perpetual contract volumes surpassing $4 trillion and the mass arrival of real-world assets on the blockchain. This development raises questions about which chains and protocols will capitalize most on these trends.
As these developments unfold, the crypto market’s trajectory remains a topic of keen interest. Investors and enthusiasts are advised to stay informed and critically assess market signals to make informed decisions. The long-term outlook, as suggested by Jamie Coutts, appears promising for the crypto industry as it moves towards broader adoption and recognition as a formidable asset class.
