2025 Crypto Market Analysis Report To Invest Like A Pro

The value of the global cryptocurrency market cap today is $3.46 trillion.

As of 2024, Statista reported that there are approximately 617 million cryptocurrency users worldwide, up from 516 million in 2023.

However, according to Yahoo Finance, Bitcoin alone has already reached a market cap of $1.831 trillion.

The growing integration and adoption of blockchain technology in various industries, such as finance, healthcare, and supply chain management, has amplified the demand for cryptocurrencies.

Additionally, continuous innovations in decentralized finance (DeFi), non-fungible tokens (NFTs), and smart contracts are attracting both institutional and retail investors.

To truly understand the crypto market dynamics, it's essential to dive into its foundational metrics. Here’s what’s covered in this report.

1. Foundational Metrics to Analyze the Crypto Market 

Understanding and analyzing foundational metrics is essential to evaluate a cryptocurrency's market behavior and potential. These metrics are the backbone for making informed decisions and include market capitalization, trading volume, volatility, and liquidity.

1.1 Crypto Market Capitalization:

Market Capitalization represents the total value of a cryptocurrency and indicates its size and stability. Higher market cap often correlates with reduced volatility and increased investor confidence. In simple words – higher the market cap, higher the stability as market volatility decreases as the market expands. “Market Cap is inversely proportional to Market Volatility.”

For instance, Bitcoin, with a market cap exceeding $1.8 tillion as of 2023, demonstrates relative stability compared to smaller altcoins, which often exhibit significant price swings.

The above graph from Statista showcases the growing market cap value of Bitcoin from April 2013 until January 2025 which should indicate current lower crypto/bitcoin volatility index, with Bitcoin claiming the lion’s share of the market and maintaining its smoothest run since it cemented itself as the face of crypto.

This is a snapshot from TradingView showcasing how crypto volatility can be represented over time. When volatility decreases – it means there are fewer price fluctuations indicating stability.

1.2. Crypto Market Volatility

As shown in the graph above, market volatility is a metric that measures price fluctuations over time. 

While high volatility can present profit opportunities, it also increases risk. 

Tools like Bollinger Bands and Average True Range (ATR) help assess this metric. 1.2.1. Market Cap's Inverse Relationship with Volatility

1.3. Crypto Trading Volume

Trading volume reflects the amount of cryptocurrency traded within a specific time frame. 

High trading volume signals strong liquidity and investor interest, ensuring smoother transactions. For example, Ethereum’s daily trading volume often surpasses $28.6 billion, making it one of the most liquid cryptocurrencies in the market. According to Yahoo Finance, Bitcoin’s daily trading volume exceeds $62.1 billion.

The period between 2017 and 2018 saw the biggest YoY price change in the history of Bitcoin. 2017 was the year when the trading volume grew by 53020.11% where it crossed the trillion dollar mark.

Bitcoinity.org, tracks daily Bitcoin trading volumes worldwide, showcasing global activity across top platforms.

The above graph shows Bitcoin trading volume across platforms across the globe. Fun Fact: It’s predicted that Bitcoin to hit $1.5M by 2035.

1.4. Crypto Liquidity

Liquidity indicates how easily a cryptocurrency can be bought or sold without significantly affecting its price. 

High liquidity ensures minimal slippage and efficient trading experiences. For example, let's say you wanted to buy 1 BTC for $100,000, but due to sudden market volatility, the actual executed price is $101,000. The slippage would be $1,000, or 1% of the intended trade amount. 

1.5. Steps to Take Before Making Your Next Crypto Investment

1. Check a coin’s market cap on platforms like CoinMarketCap to gauge stability.

2. Monitor 24-hour trading volumes on platforms like Bitcoinity to assess liquidity trends.

3. Use tools like Bollinger Bands or ATR (Average True Range) on TradingView to analyze volatility.

2. How to Read Today’s Crypto Market: Tools and Techniques for Short-Term Market Analysis

2.1. Candlestick Charts

Candlestick charts are a critical tool in technical analysis, providing a visual representation of price movements within a specified timeframe. For instance, analyzing Bitcoin’s candlestick patterns during 2021 revealed significant resistance around the $60,000 mark before it corrected sharply. These charts are commonly used to identify trends, reversals, and key support or resistance levels.

Let’s take a look at the candlestcick chart below from TradingView.

This chart shows the daily price movement of Bitcoin (BTC) against the US Dollar (USD) on the Bitstamp exchange. Here’s a breakdown:

Candlesticks represent daily price movements.

• Green Candles: The price closed higher than it opened (bullish movement).

• Red Candles: The price closed lower than it opened (bearish movement).

The bars at the bottom represent trading volume.

• Green bars: Higher volume on bullish days.

• Red bars: Higher volume on bearish days.

2.2. Indicators

• Moving Averages (MA): Moving averages smooth out price data to identify trends over time. MAs take the average of an asset’s price over a specific number of past periods and create a line that eliminates day-to-day fluctuations (or "noise") to reveal the overall trend.

When a short-term 50-day MA crosses above a  long-term 200-day MA, it often signals a bullish trend, known as the "Golden Cross." Historical data shows that such a pattern in 2020 preceded Bitcoin’s rally to all-time highs.

The orange dotted line is called the 50-day moving average (MA). It represents the short-term trend by averaging Bitcoin's price over the last 50 days. It reacts faster to price changes.

The green dotted line is called the 200-day moving average (MA). It represents the long-term trend by averaging Bitcoin's price over the last 200 days. It reacts slower and provides a smoother view of the overall market trend.

• Relative Strength Index (RSI): RSI is a popular momentum oscillator used in technical analysis to measure the speed and magnitude of recent price changes. It helps identify whether an asset is overbought or oversold on a scale of 0 to 100, signifying that RSI values range between 0 and 100. RSI is typically shown as a separate line chart below the main price chart as shown in the image below.

  

An RSI above 70 indicates overbought conditions, while below 30 suggests oversold. For example, during the May 2021 market crash, Bitcoin’s RSI dipped below 30, signaling a buying opportunity for many investors.

• Bollinger Bands: Bollinger Bands measure volatility and overbought/oversold levels. For example, in March 2022, Ethereum’s price broke through the upper Bollinger Band, signaling increased volatility and a potential reversal. How To Read Bollinger Bands And What Do They Indicate? Below is an image of Bollinger bands from Binance Academy. So, how are Bollinger bands different from candlesticks? Let me explain.

  

  Are Bollinger bands candlesticks with upper and lower bands? Not exactly. While Bollinger Bands are often used with candlestick charts, they are not the candlesticks themselves. Bollinger bands consist of a:

  • Middle Band: A simple moving average (SMA) of the price, typically over 20 periods.

  • Upper Band: The middle band plus two standard deviations of the price.

  • Lower Band: The middle band minus two standard deviations of the price.

Candlesticks show the price action (open, high, low, close) over a specific time period.

Bollinger Bands are added as indicators around the candlesticks to provide insights into volatility and potential overbought/oversold conditions. When the price touches or moves outside the upper band, it may indicate overbought conditions. When the price touches or moves outside the lower band, it may indicate oversold conditions.

2.3. Steps to Take Before Making Your Next Crypto Investment

1. Use TradingView to plot moving averages and identify crossover events like the "Golden Cross" or "Death Cross." Historical analysis shows a 75% correlation between these crossovers and subsequent price trends in Bitcoin.

2. Monitor RSI levels to determine optimal entry or exit points. For instance, set alerts when RSI crosses 30 or 70 for key assets like Bitcoin or Ethereum. Ethereum’s RSI in late 2022 peaked at 72 before a correction of over 15%.

3. Experiment with Bollinger Bands to visualize volatility and identify breakout or reversal points in coins like Solana or Cardano. During 2023, Cardano’s Bollinger Band breakout signaled a 20% price increase within a week.

4. Identify support and resistance levels on charts to time trades. For example, during 2022, Bitcoin’s support level was around $19,000, while $25,000 acted as resistance. Breakouts beyond $25,000 led to 10% intra-day surges.

5. Recognize patterns like ascending triangles, double tops, or head-and-shoulders formations. In 2023, an ascending triangle pattern preceded Polygon’s breakout from $0.75 to $1.25, achieving a 67% return.

3. Must-Have Tools and Resources for Crypto Analysis

Making informed decisions in the crypto space requires leveraging the right tools and resources to guide your investments effectively. Here's a breakdown of some must-have tools, their features, and examples to show how they empower crypto traders and investors like you.

3.1. Data Aggregator Tools: CoinMarketCap

Data aggregators provide a one-stop platform for key market data, including prices, volumes, market capitalization, and rankings.

Examples:

• CoinMarketCap:

  • Tracks over 25,000 cryptocurrencies with data from 500+ exchanges.

  • Example: As of January 2025, Bitcoin holds the top spot with a market cap of $1.83 trillion, and Ethereum follows with $363 billion.

    

The above image shows the current Crypto Market Overview.

The above image shows the breakdown of the Crypto Market Overview showing individual crypto market caps.

• Additional Features:

  • You can also find historical data for price trends.

  • Metrics like dominance (e.g., Bitcoin dominance at 45% in December 2024).

• Unique Feature: “Fear & Greed Index,” which shows crypto market sentiment (currently at 65 – Greed). According to CoinMarketCap, when the Fear & Greed Index value is closer to 0, the market is in Extreme Fear, and investors have over-sold irrationally. When the value is closer to 100, the market is in Extreme Greed, indicating a likely market correction.

  

The above image from CoinMarketCap signifies the current crypto market sentiment - which is neutral.

Use Case:

• Compare historical prices. For instance, Ethereum’s price rose 52% after the Shanghai upgrade in April 2023.

• Analyze trading volumes for liquidity insights.

3.2. Charting Platform: TradingView

Charting platforms allow users to visualize price data, identify trends, and apply technical analysis.

Examples:

• TradingView:

  • Popular for its customizable charts, featuring 50+ built-in indicators like RSI, MACD, and Bollinger Bands.

  • Example: A Golden Cross occurred in Bitcoin charts in October 2024, where the 50-day MA crossed above the 200-day MA, signaling a rally from $84,000 to $96,000. The below image is a snapshot of death cross from Christmas 2024

    

  • Community Feature:

    • Users share trading ideas, like the Head-and-Shoulders pattern on Ethereum, predicted a 15% drop in December 2024.

3.3. On-Chain Metrics: Glassnode, Santiment

On-chain market intelligence and analytics platforms like Glassnode and Santiment provide insights into blockchain activity, helping traders assess trends and market sentiment.

Examples:

• 3.3.1. Glassnode - To track metrics like:

• HODL Waves: HODL waves show the age of coins held in wallets. What are HODL Waves? HODL Waves indicate how long bitcoins have remained unmoved in wallets. These charts use color-coded bands to depict different age ranges of unspent transaction outputs (UTXOs), providing insights into investor behavior and market dynamics.

  

  Image Credits: Glassnode Academy Key Features of HODL Waves:

• Color-Coded Age Bands: The bands range from warm colors (reds and oranges) at the bottom, representing bitcoins that have moved recently, to cooler colors (greens and blues) at the top, indicating bitcoins that haven't transacted in a long time.

• Thickness of Bands: The thickness of each band corresponds to the proportion of the total Bitcoin supply that falls within that specific age range. Changes in band thickness over time reflect shifts in holding patterns, such as accumulation or distribution phases.

• Market Cycle Indicators: Spikes in the warmer-colored bands suggest increased movement of bitcoins, often associated with heightened market activity or selling pressure. Conversely, expanding cooler-colored bands indicate growing long-term holdings, signifying investor confidence and reduced market liquidity.

By analyzing HODL Waves, investors and analysts can gain a deeper understanding of market sentiment, the behavior of different holder groups, and the overall health of the Bitcoin network. Glassnode Academy puts an apt explanation to using HODL Waves as a metric to study the market and accumulation of coins in the image below.

Example: In December 2024, 78% of Bitcoin supply remained unmoved for over a year, indicating strong HODLing behavior.

• Other Metrics to track:

• Active Addresses: Ethereum had 750,000 daily active addresses in Q4 2024.

• Exchange Flows: Glassnode reported a net outflow of 25,000 BTC from exchanges in November 2024, signaling accumulation.

• 3.3.2. Santiment - To analyze Market Influence:

Santiment is a behavioral analytics platform that helps you make the right investment decisions by putting the right data in your hands. Santiment is powered by community insights, on-chain, social and dev data.

• Example: Santiment identified spikes in whale transactions in Solana before its price jumped 22% in August 2024.

  

  In cryptocurrency, whale transactions refer to large-scale movements of digital assets conducted by individuals or entities known as whales—those who hold substantial amounts of a particular cryptocurrency. These significant transactions can influence market liquidity and price volatility.

Key Characteristics of Whale Transactions:

• Large Volume Transfers: Whale transactions typically involve substantial quantities of cryptocurrency, often enough to impact market dynamics.

• Market Influence: Due to their size, these transactions can lead to notable price movements by increasing volatility or affecting liquidity.

• Visibility: Thanks to blockchain transparency, whale transactions are publicly observable, allowing analysts and investors to monitor these large movements. For instance, Cointelegraph says there are dedicated solutions to track crypto whale transactions. These tools provide data on whale actions and, in some instances, can also make investment/trading decisions for the user.

3.3.3. Impact on the Market:

• Price Volatility: A whale selling a large amount of cryptocurrency can create downward pressure on its price, while significant purchases can drive prices up.

• Liquidity Shifts: Whale transactions can alter the available supply of a cryptocurrency on exchanges, affecting how easily other traders can buy or sell the asset.

Monitoring whale transactions provides insights into market sentiment and potential future price movements, making it a valuable practice for investors and traders in the crypto space.

Santiment’s Social Data feature tracks mentions of crypto keywords on platforms like Twitter, correlating social buzz with price trends.

3.4. Why These Crypto Analysis Tools Matter

• CoinMarketCap: Provides the broadest market overview for informed decision-making.

• TradingView: Enables precise technical analysis for short-term trades or long-term trend identification.

• Glassnode/Santiment: Offer deep insights into blockchain activity, giving an edge in spotting market trends before they’re reflected in price.

4. The Rise of Centralized Crypto Platforms: A Security Evolution

The crypto industry has grown exponentially, but with it comes an alarming rise in cyber threats. In 2021 alone, hackers exploited vulnerabilities in the cryptocurrency ecosystem to steal over $4 billion, with decentralized finance (DeFi) platforms being the primary targets. This unsettling trend underscores the urgent need for robust security measures to protect users and their assets.

Centralized platforms, such as Coinbase and Binance, have responded by implementing advanced security protocols, including multi-factor authentication and encryption, to protect user assets.

Additionally, crypto lending platforms like Lantern Finance have established insurance funds to cover potential losses from cyberattacks, providing an extra layer of investor protection.

For instance, Lantern Finance covers each of its customers with an insurance policy of up to $250 million to cover digital assets held on its platform. This is in partnership with BitGo.

Given the increasing sophistication of cyber threats, choosing a centralized platform with comprehensive security measures and insurance coverage is a prudent decision for safeguarding your crypto investments.

5. Top Crypto Trends, Market Movers & Predictions for 2025

Based on recent analyses, here are ten notable cryptocurrency trends accompanied by significant figures:

1. A Roaring Increase in Crypto Market Capitalization: Cryptocurrency Market Capitalization soars by $1.6 Trillion (+97%) in 2024.

2. NFT Market Resurgence: November 2023 saw a 200% month-over-month increase in NFT sales volume, reaching $0.91 billion, marking a significant rebound in the NFT sector.

3. TrueUSD Market Cap Plunge: Following Binance's delisting, TrueUSD's market capitalization plummeted by approximately 79%, highlighting the impact of exchange listings on stablecoin valuations.

4. Bitcoin's Price Surge: Bitcoin reached an all-time high of over $100,000 in December 2024, driven by increased institutional adoption and favorable regulatory developments.

5. Approval of Bitcoin ETFs: The U.S. Securities and Exchange Commission approved Bitcoin exchange-traded funds (ETFs) in early 2024, increasing mainstream adoption and investment inflows.

   

6. Ethereum's Market Growth: Ethereum's price experienced significant growth, with projections indicating a potential rise to $100,000 after 2030, reflecting increased developer activity and DeFi expansion.

7. Meme Coin Market Expansion: The meme coin sector saw a 500% growth. Its value increased from $20 billion in January 2024 to over $120 billion by year's end, fueled by endorsements from influential figures and social media trends.

8. Bitcoin Miners' Stockpiling: U.S. Bitcoin miners, such as Mara Holdings and Riot Platforms, have accumulated Bitcoin to mitigate profit squeezes due to rising energy costs and increased competition.

9. Regulatory Developments: The incoming Trump administration's proposed crypto-friendly regulations are expected to spur a temporary boom in cryptocurrency prices, followed by potential market volatility.

10. Institutional Investments: Institutional investments in cryptocurrencies have grown significantly, with companies like AMP investing $27 million into Bitcoin, signaling increasing trust in digital assets.

11. Bitcoin Price Prediction for 2025: Crypto investors and industry watchers are expecting Bitcoin to hit $200,000 in 2025.

12. Integration of AI in Crypto Security: Integrating AI technologies in blockchain platforms is set to redefine digital transactions and disrupt various industries, enhancing efficiency, adaptability, and, most importantly – security in blockchain.

These trends highlight the dynamic nature of the cryptocurrency market, with significant developments in adoption, regulation, and technology shaping its trajectory in 2025.

6. Crypto Regulations & Investor Protection

3 years ago, in August 2021, Garl Gensler - the ex Chair of SEC called cryptocurrency a “nascent technology”.

He’d said - “To those currently or considering investing in crypto, please remember - Not only are they a highly speculative asset class, but there are also significant gaps in the investor protection afforded to you”.

He also mentioned that crypto platforms and crypto lending platforms do not have the same level of investor protection as that of buying and selling of stocks on a stock exchange. And that was true 3 years back.

Today, that’s changing – Lantern, a modern crypto lending platform with a security-first approach offers investor protection by partnering with industry-leading custodians for asset security. Lantern also enforces rigorous anti-money laundering (AML) and know-your-customer (KYC) protocols, guaranteeing transparency in every transaction and operation. Additionally, customers are insured for up to $250 million in the event of a failure.

Lantern's approach aligns with evolving regulatory standards, ensuring compliance with the latest guidelines from bodies like the SEC and CFTC. This commitment not only protects investors but also builds trust in the rapidly evolving crypto landscape.

“By leveraging some of the best-in-class third party custodians, Lantern enhances security, scalability, and reliability, providing investors with a platform that is both innovative and dependable.”

• Prince Jindal, Co-Founder & COO of Lantern.Finance

"Lantern is committed to democratizing access to secure crypto lending, empowering more people to participate in the digital economy with confidence."

• Jung Won Kim, Co-Founder & CEO of Lantern.Finance

6.1. Proactive Risk Management

Lantern employs proactive risk management strategies, including real-time monitoring of transactions, fraud detection systems, and contingency planning, ensuring investors' funds remain secure under all circumstances.

Investors have already reaped the benefits of Lantern’s robust approach. For instance, [ testimonial] showcases how Lantern’s insurance and AML (anti-money laundering) measures have safeguarded funds and provided peace of mind.

Lantern is not just addressing current challenges but is actively shaping the future of investor protection in crypto, paving the way for a more secure and transparent financial ecosystem. Beyond offering protection, Lantern empowers investors with educational resources to understand risks, market trends, and best practices in crypto investing. You can join the crypto community here. 

7. Crypto Investment Checklist: Important Steps to Take Before Making Your Next Investment Move

Building on the tools and resources mentioned above, here are five critical steps to follow before committing to your next crypto investment:

1. Analyze Market Data for Trends

   • Use platforms like CoinMarketCap or CoinGecko to track price trends, market cap, and trading volume.

   • Example: Check Bitcoin’s dominance or Ethereum’s daily trading volume to gauge overall market sentiment.

2. Apply Technical Analysis to Assess Entry Points

   • Leverage TradingView to identify key price levels using indicators like RSI, MACD, and Bollinger Bands.

   • Example: Look for an RSI below 30 on Ethereum’s chart to spot oversold conditions that could signal a buying opportunity for you.

3. Evaluate On-Chain Metrics for Insights

   • Use Glassnode to review active address trends, exchange flows, and HODL behavior.

   • Example: If there’s a significant outflow of Bitcoin from exchanges, it might indicate accumulation, signaling a potential price increase.

4. Monitor Social and Sentiment Data

   • Check platforms like Santiment for spikes in social activity or whale transactions.

   • Example: A surge in Solana whale activity in Q3 2024 preceded a 20% price jump—spotting this early could guide your investment strategy.

5. Set a Risk Management Strategy

   • Use the data from these tools to decide how much you’re willing to invest and at what price. Set stop-loss and take-profit levels to protect your capital.

   • Example: If the Bollinger Bands indicate high volatility, plan a stop-loss just below key support levels.

6. Check If You’re Covered by Insurance

   • Scams and hacks are rampant in the DeFi (decentralized finance) crypto sector. 

   • Always remember to ask your crypto staking/lending platform about the security options available to safeguard your investments.

8. Conclusion:

Crypto market analysis is a blend of technical, fundamental, and sentiment evaluation. By leveraging the right tools and strategies, you can navigate the market’s volatility and make informed decisions. Start small, practice consistently, and refine your approach using platforms like TradingView, Yahoo Finance, Messari, and LunarCrush. The key to success lies in staying informed and disciplined—your journey to smarter crypto investments begins here.

If you're looking for expert guidance on your next crypto investment or advice on making your crypto assets work for you while you HODL, reach out to us today!

Disclaimer: The views shared here reflect the opinions of Lantern and its team and are for informational purposes only. We make no guarantees about accuracy or reliability, as some information is sourced from third parties. This is not legal, business, tax, or investment advice—consult your financial advisors before making the investment decisions. References to assets, investments, or companies are for illustration and not investment recommendations. Past performance does not guarantee future results. Content is as of the date indicated and may change based on market sentiments and volatility. Visit Lantern's Disclosures for more details. Always review all related documents before investing.