Ethereum And Bitcoin Slip: Is The 2025 Crypto Rally Running Out of Fuel?

Bitcoin touched a new all-time high of $126,100 earlier this month, taking other major tokens like Ethereum, Solana, and BNB as well to new highs. After a strong bull run for the past couple of months, the market is now in a consolidation phase.

BTC is hovering around the $111,200 mark, while ETH trades near $3,955. Historically, October has been a bullish month for crypto. But seeing a sideways market in this cycle has got one major question among the investors: Is the 2025 crypto rally losing steam?

In many cases, this would present as the end of a bull run. But looking at how the crypto market is positioned right now, we would be wrong to assume that the steam in this cycle is over. Here's why.

Institutional Demand Is Stronger Than Ever

"What we're witnessing today in terms of institutional adoption in crypto is a first of its kind. Bitcoin spot ETFs continue to see record-breaking inflows, with BlackRock's iShares Bitcoin Trust (IBIT) managing close to $100 billion in assets. In fact, Bitcoin ETFs became the fastest ever ETFs to hit an AUM of $70 billion in just 341 days. This is 5x faster than the Gold ETFs," said Mr Edul Patel, CEO of Mudrex.

On the other hand, corporate treasuries are also doubling down. So far, over 1 million BTC worth $117 billion are now being held collectively by public companies in the form of treasuries. MicroStrategy alone has added about 40,000 Bitcoins to its balance sheets, showing its conviction in the asset.

On-Chain Data Shows A Bullish Picture

The market pulse is best understood through on-chain data, and a different story is being shown by these metrics. Over 1 million new Bitcoin addresses were activated in the past week, and a transaction volume of over $15 billion was recorded.

At the same time, whale activity, measured by the Bitcoin Exchange Whale Ratio, has been pushed to its highest level this year, following patterns seen just before the 2024 rally.

"When whales re-enter the market, huge liquidity is unlocked, helping crypto build momentum for the next leg of the rally. Given that these inventors are long-term investors, they also contribute to a short squeeze, strengthening the bull run," commented Mr Edul Patel.

Macro Tailwinds Favouring Crypto

The macroeconomic environment couldn't be more supportive for crypto. Liquidity across global markets has been boosted by the Fed's decision to cut interest rates. With two more rate cuts expected before year-end and further easing projected into 2026, conditions are being created for risk assets like Bitcoin and Ethereum to benefit.

"At the same time, Global M2 Money Supply, which historically leads Bitcoin's upside with a slight delay, is increasing at a pace not seen since the COVID cross-market crash in March 2020. Global M2 Money Supply has grown from $129 trillion six months ago to about $137 trillion now. This indicates that a rally is due in the crypto market," stated Mr Edul Patel, CEO of Mudrex.

The Road Ahead

While short-term corrections are natural in any bull cycle, as long as the structural foundation of this rally remains intact, there is no need to worry.

"It has been shown in previous cycles that Q4 is consistently Bitcoin's strongest quarter, with average gains of 79% since 2013. With institutional adoption being increased, liquidity being expanded, and the effects of Bitcoin's 2024 halving continuing, a strong finish to the year is being set up for the crypto market," commented Mr Edul Patel.

The recent pullback should not be seen as exhaustion but as refuelling. As global capital, regulation, and technology continue to focus on digital assets, significant momentum is still being maintained in the 2025 crypto rally. Another breakout may be expected soon.

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