The crypto market is at an impasse. Bitcoin is moving slowly and altcoins are showing little conviction. According to Ki Young Ju, CEO of CryptoQuant, the cause lies in American market sentiment. Until that improves, there will be little fireworks.

Don’t panic, but don’t accelerate either

Ju argues that there are no signs that the bull market is over. On-chain activity remains low, and important indicators point to a neutral market. Nevertheless, the basis remains strong: mining companies are setting up new rigs and there is no structural outflow of major players.

According to Ju, an early end to this cycle would not be favorable for anyone—not for old Bitcoin whales, mining companies, traditional financial institutions, or even Trump. “Retail investors? The market doesn’t really care about them,” he adds.

Ethereum: no distribution phase, but no breakthrough either

Ju does not see any signs of a distribution phase for Ethereum—the stage in which major players slowly sell after a bull run. However, liquidity among retail investors is much weaker than during the previous cycle.

#Bitcoin market will likely remain slow until sentiment in the U.S. improves.

There’s no significant on-chain activity, and key indicators are neutral, suggesting the bull cycle is still intact. Fundamentals remain strong, with more mining rigs coming online.

If the cycle ends… https://t.co/fSWl26d0gx pic.twitter.com/byWdweZhSQ

— Ki Young Ju (@ki_young_ju) March 4, 2025

The current sideways price movement of Ethereum means that there is no clear direction yet. There is no great selling pressure, but there is also no momentum for a new rise.

What needs to change?

As long as American investors remain cautious, the market will continue to move slowly. That could change due to a shift in macroeconomic policy, regulatory clarity or an impulse from institutional parties.

For the time being, Bitcoin is hanging on, waiting for the next catalyst.

That could come in the form of Donald Trump’s Bitcoin reserve. Next Friday, the first White House Crypto Summit is scheduled to take place in the United States, and Trump is expected to announce a concrete plan for the Bitcoin reserve.

Howard Lutnick, Trump’s Secretary of Commerce, has already said that the reserve will mainly revolve around Bitcoin. Other currencies will be treated well, but differently, because the focus should be on Bitcoin.

In that respect, expectations are clear, but of course it remains to be seen how large the reserve will be initially. It must involve substantial investments if the market is to benefit from it.