Crypto Market Flash: Bullish Reversal Imminent as Bitcoin Becomes Safe Haven

The crypto market may be signaling a potential bottom, according to Real Vision's chief digital assets analyst, Jamie Coutts. In a recent social media post, Coutts highlighted a metric tracking the performance of crypto assets over 365 days, suggesting that the market is gearing up for a bullish reversal. He noted that the recent market flush resulted in the highest 365-day new low (NL) reading since mid-2024, indicating that a bottom may be forming.

Coutts also shared the TOTAL2 chart, which shows the market cap of all crypto assets excluding Bitcoin (BTC) and stablecoins. The chart suggests a possible reversal forming on the daily timeframe after a downtrend, with TOTAL2 currently valued at $1.24 trillion.

In addition, Coutts discussed the potential break in Bitcoin's historic inverse correlation with the US dollar index (DXY). He noted that Bitcoin has surged from $70,000 to $110,000 while the DXY climbed from 104 to 110 since the September low, suggesting that more investors may be treating the flagship crypto asset as a safe-haven asset similar to gold.

The adoption of blockchain technology is also surging, as indicated by the metric of daily active addresses (DAAs) on smart contract platforms (SCPs). Coutts noted that active addresses have tripled over the past year while markets remain volatile, suggesting that the technology is becoming more resilient and less tethered to liquidity cycles.

Looking ahead, Coutts predicts that 2025 will see an explosion of blockchain technology adoption across several sectors. He expects on-chain perps volumes to exceed $4 trillion and anticipates the integration of real-world assets (RWAs), stocks, commodities, bonds, and KYC solutions to facilitate institutional participation.