Is the Crypto Market About to Peak? This New Report Has the Answer
FBS Breaks Down Crypto Bull Cycles: What to Watch Before the Next Market Peak
As Bitcoin gains strength and altcoins follow, traders everywhere are asking: Are we nearing the top of this bull cycle, or is there still room to grow?
Global broker FBS just released a fresh market analysis that offers a deep dive into how liquidity flows in the crypto market, and what this means for traders looking to time their moves — especially their exit strategy.
Let’s break down the key findings from this report and how it could help you navigate the volatile world of crypto in 2025.
The Four Phases of a Crypto Bull Market
Understanding the crypto market structure is key to knowing where we are in the cycle — and where we’re headed next. According to FBS analysts, each bull run generally unfolds in four stages, driven by investor psychology and liquidity flow.
Phase 1 – Bitcoin Takes the Lead
The cycle usually starts with capital flowing into Bitcoin (BTC), the most trusted and liquid asset in crypto. It’s seen as a safer bet, especially early in a market recovery or when investor sentiment is still cautious.
Phase 2 – Big Altcoins Rise
Once Bitcoin gains momentum, investors often rotate their profits into large-cap altcoins like:
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Ethereum (ETH)
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Solana (SOL)
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BNB
These coins typically follow Bitcoin’s lead, but with higher volatility — and therefore, higher potential returns.
Phase 3 – Small Cap and Volatile Tokens Surge
As confidence grows, the market often turns speculative. Money flows into smaller, riskier altcoins, where traders chase fast profits. These assets might not have strong fundamentals, but the potential for short-term gains is high.
Phase 4 – Meme Coins Signal the Peak
Finally, the euphoria phase begins. Assets like DOGE, SHIBA, and PEPE start dominating headlines and social media feeds. Trading volumes spike, and prices soar — not because of value, but hype and FOMO.
“Every cycle ends in euphoria. When meme coins dominate headlines and trading volumes, it’s often a sign that the market is overheated,”
— FBS analysts
This exact pattern played out in 2021. Meme coins hit their peak in October — just before Bitcoin topped out in November and the market reversed course.
Are We Near the Top in 2025?
So, where are we now? According to the FBS report, there’s still room for growth, but the market is showing signs that we’re late in the cycle.
Bullish Patterns Are Still Intact
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The total crypto market cap has recently broken out of bullish technical patterns.
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This breakout suggests a potential 15% upside for the broader market.
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Altcoins, which tend to move faster, could climb up to 37% based on current targets.
This means we may not be at the top yet, but the final leg of the rally could be underway.
Meme Coins Are Heating Up Again
Interestingly, meme coins are making a comeback. After correcting over 80% from their 2021 highs, their capitalization is rising once again.
This could either signal:
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The start of a euphoric final surge, or
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A trap for late investors before the market rolls over.
The timing is critical — and that’s where understanding liquidity trends becomes essential.
A New Narrative Emerging — Real World Assets (RWAs)
While meme coins defined the last cycle, FBS analysts believe a different asset class could steal the spotlight this time: Real World Assets (RWAs).
What Are RWAs?
RWAs are tokenized versions of traditional assets, such as:
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Stocks
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Private equity
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Real estate
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Bonds
These are digitized and traded on blockchain platforms, blending the reliability of traditional finance with the speed and transparency of crypto.
Big Platforms Are Moving In
Major players like Robinhood, Kraken, and Coinbase are actively expanding into the RWA space. This suggests a growing shift in where institutional and retail liquidity may go next.
“Meme coins defined the last cycle. This time, RWAs may play that role,”
— FBS Experts
If RWAs become the new narrative, early movers could benefit from strong returns before the next bull cycle begins.
What Traders Should Watch Now
Whether you’re a long-term holder or a short-term trader, knowing what indicators to follow can make all the difference.
Key Signals to Track
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Liquidity Flow: Watch how capital moves — from BTC to altcoins to meme coins.
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Market Cap Trends: Is meme coin capitalization rising? That’s a potential red flag.
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Narrative Shifts: Are influencers and media starting to talk more about RWAs?
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Technical Patterns: Breakouts in total market cap or specific coins can signal momentum.
Timing the Exit
No one can perfectly time the top. But recognizing when the market enters the euphoric stage — especially if meme coins are pumping hard — can help traders:
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Take partial profits
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Rebalance portfolios
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Avoid getting caught in the crash
About FBS
FBS is a global trading brand with over 16 years of experience, operating under licenses from FSC (Belize), CySEC (Cyprus), and ASIC (Australia). It serves over 27 million traders worldwide and has earned more than 100 international awards.
Known for its strong market insights, FBS regularly publishes expert analysis to help traders make more informed decisions in forex, crypto, and commodities markets.
Will History Repeat or Evolve?
The crypto market never moves the same way twice, but patterns often rhyme. The FBS report is a valuable reminder that bull cycles follow psychological and liquidity-based trends, not just price charts.
If meme coins are back in the spotlight, it might mean we’re nearing the end of this rally. But if RWAs take the stage, it could mark the start of a new trend altogether.
Either way, understanding these phases — and where the money flows next — could be the key to protecting gains and finding new opportunities in the months ahead.
Disclaimer: The above press release has been provided by a third party. We do not verify or endorse the content and will not be responsible for any inaccuracies, claims, or damages arising from the same.