3 Predictions for the Next Crypto Bubble

If there's a bubble forming, it won't be like the last one. So far, the short history of cryptocurrency is a story of market bubbles, much like the historical bubbles you've probably heard of in tulips or dot-com companies, each driven by a shiny new idea that kept getting shinier until, suddenly, it didn't. The 2021 crypto boom and bust taught investors that euphoria can vanish overnight. Yet, despite many people learning painful lessons last go-around, prices are now rumbling higher again. The next bubble, whether it's quietly forming now or arrives in a year or further in the future, won't look like the last one. On that note, here are three predictions about the next crypto bubble.

---

1. Treasury fever will amp things up

Crypto treasury companies, like Strategy (NASDAQ: MSTR) (formerly known as MicroStrategy), keep buying Bitcoin (BTC) by the thousands. Strategy now controls roughly 3% of Bitcoin's capped supply, a feat that's encouraged dozens of copycats to follow suit and add Bitcoin to their balance sheets. Crypto treasuries were a Bitcoin-only club in 2020, but the playbook has evolved. Now, altcoins and even meme coins are being gobbled up by treasury companies, and this is predicted to be one of the defining features of the next bubble and the crash that follows. A new twist emerged recently: failed or struggling businesses in many different industries are pivoting into the wildest crypto treasury strategies they can manage. For instance, a tiny pork-processing company that later turned into a Bitcoin mining operation raised $500 million to build a Dogecoin hoard, positioning itself as the Strategy of meme coins. If that sounds ridiculous, it's because it is. However, it shows how far down the risk curve treasury strategies can travel once boardrooms arrive at the (questionable) conclusion that such coins are balance sheet rocket fuel. If the bubble gathers steam, expect other unknown but public companies to announce punts on everything from lesser-known meme coins with small market caps to illiquid non-fungible tokens (NFTs), betting the market will reward them for their bold vision. The upside is obvious here: scarce float of these assets pushes prices up when treasurers pile in to buy them. But the risk is equally clear: concentrated corporate holdings become forced sellers if credit markets seize up.

---

2. One coin will set the pace, but another will steal the limelight

Every bubble needs a prime driver, and Bitcoin will almost certainly fill that role once again, owing to its sheer size and its increasing degree of integration with the traditional financial system. The surprise prediction here is who will ride shotgun. In 2021, that honor went to Ethereum (ETH) and its decentralized finance (DeFi) ecosystem. Next time, the secondary mover looks more likely to be Solana (SOL). Why Solana? Speed matters, as do low costs. Its low-fee design is becoming the default playground for artificial intelligence-driven DeFi experiments, as well as meme coin launches—a merger of function and fun that Ethereum's higher fees struggle to match. Other segments are falling into its orbit, too, and more are likely to be on the way. During the second quarter, Solana earned $271 million in network revenue, outperforming Ethereum by more than double. With such a big difference in inflows, it's far more likely to see a major expansion when conditions get frothy.

---

3. There will be a longer fuse this time

Crypto's correlation with stocks rises when institutional participation is high, meaning big money subtly sets the tempo before the crowd piles in. In the same vein, crypto's current advance is institution-led. Exchange-traded fund (ETF) demand, corporate treasuries, and even tokenized funds are soaking up supply, while most investors remain cautious, remembering the sharp sting of the 2021 bubble popping. Therefore, contrary to the prior bubble's conditions, any new bubble's upward explosiveness will take much longer to play out. The reason for this is that the sequencing of capital inflows to crypto matters. Institutions tend to buy methodically and sell methodically, extending rallies longer than in manias driven by smaller investors that burn bright and then collapse. If history rhymes, a new bubble cycle could grind upward for months before retail investors arrive en masse.

---

What investors should take away

Recognize the signs of a bubble forming early, size positions modestly, and remember that every bubble ends the same way: with gravity winning and many investors experiencing steep losses after buying near the top.

---

About the Author

Alex Carchidi is a contributing Healthcare and Cryptocurrency Analyst at The Motley Fool, covering publicly traded companies and investments in biotech, pharma, cannabis, and digital assets. He holds degrees in Biology, Philosophy, and an MBA focused on Finance. Outside of work, Alex enjoys traveling in Latin America and exploring Greater Boston's food scene.

---

---

Frequently Asked Questions (FAQ)

About Crypto Bubbles and Market Cycles

Q: What defines a "crypto bubble"? A: A crypto bubble refers to a period of rapid and unsustainable price increases in cryptocurrencies, driven by speculation and hype, which eventually leads to a sharp and dramatic price collapse. Q: How are past crypto bubbles similar to or different from potential future ones? A: Past bubbles were often characterized by retail investor FOMO (Fear Of Missing Out) and less institutional involvement. Future bubbles might be influenced more by corporate treasury strategies and evolving technological narratives, potentially leading to different market dynamics and durations. Q: What is "Treasury Fever" in the context of crypto? A: Treasury fever describes the trend of companies adding significant amounts of cryptocurrency, like Bitcoin, to their corporate balance sheets as a treasury reserve or speculative asset, influencing market demand and potentially price. Q: Why is Solana predicted to be the next major altcoin mover after Bitcoin? A: Solana's speed, low transaction fees, and its adoption for AI-driven DeFi experiments and meme coin launches make it a strong contender to capture market attention and drive growth alongside Bitcoin in the next market cycle. Q: What does a "longer fuse" mean for the next crypto bubble? A: A "longer fuse" suggests that the build-up to the next crypto bubble might be slower and more methodical, driven by institutional investors' gradual accumulation, before a potential surge in retail interest. This contrasts with previous bubbles that saw rapid retail-driven manias. Q: What are the key risks associated with corporate crypto treasuries? A: The primary risks include concentrated corporate holdings leading to forced selling during market downturns or credit crunches, and the potential for investing in highly volatile or illiquid assets as treasury strategies become more aggressive.

Crypto Market AI's Take

The discussion around potential crypto bubbles and market cycles is a fascinating intersection of technology, finance, and human psychology. At Crypto Market AI, we leverage advanced artificial intelligence and machine learning to provide deep market insights and analytical tools designed to help navigate these complex dynamics. Our platform can assist in identifying potential trends, analyzing asset performance, and understanding the factors influencing market sentiment. Whether it's through our AI-powered trading bots or our in-depth market analysis, we aim to equip our users with the intelligence needed to make informed decisions in the ever-evolving crypto landscape. For those looking to understand the drivers behind cryptocurrency prices and market movements, our resources on how cryptocurrencies gain value and market analysis can provide valuable context.

More to Read:

• Why is Crypto Down Today?
• Bitcoin Records Highest Monthly Close
• Ethereum's July Rally Fueled by Fresh Inflows
• Understanding Solana's Rise in the Crypto Space

Originally published at The Motley Fool on August 4, 2025.