- Bitcoin’s short-term holders surged briefly, but not as strongly as previous cycles, hinting at a more stable correction this time.
- CryptoQuant charts show this overheating phase is shorter and softer than those before 2024 and 2025 corrections, signaling a milder slowdown.
- On-chain metrics point to a market reset, building a possible base for an uptrend later in 2025 as activity begins to normalize.
The cryptocurrency market is currently undergoing a short-term overheating, a temporary decline in momentum. Compared to the previous periods of correction, this stage is significantly less intense in terms of time and scale.
Short-Term Overheating Shows Signs of Cooling
According to on-chain data shared by CryptoQuant via DanCoinInvestor, the market is now moving out of a brief overheating stage. The analysis focused on Bitcoin held for just 1 day to 1 week, a metric that tends to spike during speculative phases.
The percentage of short-term holders has recently increased, suggesting rapid trading activity. However, the rise in this metric was not as sharp or prolonged as seen before in earlier market corrections in March–October 2024 and January–April 2025.
Previous overheating cycles were more extended and displayed stronger signals of speculative excess. This current instance shows both a shorter time frame and a lower magnitude. The reduced intensity could mean the market is less vulnerable to sharp pullbacks in the near term.
Comparison With Previous Corrections
CryptoQuant illustrated past overheating periods using red boxes and current trends with yellow boxes to highlight the contrast. Historically, stronger and more prolonged overheating has led to more extensive corrections.
The earlier corrections followed steep and sustained rallies. In contrast, the recent price movement has been relatively modest. This aligns with the milder overheating phase currently unfolding.
As the market cools, traders and investors may expect a shorter and less aggressive correction than previously seen. Despite the deceleration, the current structure indicates a market that is adjusting rather than breaking down.
Prospects for the Second Half of 2025
Although its first wave indicates cooling off time short term, long term viewers are monitoring resurgence of power. CryptoQuant’s analysis implies that the current reset may lay the groundwork for a potential rebound in the second half of the year.
Patience remains key. With the overheating period waning, market participants are probably preparing for the next directional move. Given past cycles, this readjustment may act as a platform for future upside as 2025 goes on. The present cycle fits a moderate paradigm, within a broader behavioral framework seen throughout history in crypto markets, which is valuable to observers regarding Bitcoin’s next directional shift.
