Bitcoin (BTC) has surged more than 30% since last week’s pivotal U.S. election, briefly approaching the critical $90,000 resistance level. While price retracements are expected in volatile markets, analysts now assert that the world’s largest cryptocurrency has officially entered the third stage of the current bull cycle—a phase characterized by widespread gains, institutional momentum, and growing market euphoria.
This surge marks a significant shift in market dynamics, moving beyond early adopters and deep-pocketed insiders into a broader wave of capital inflow and strategic positioning. With momentum building fast, the crypto ecosystem is witnessing renewed interest from asset allocators, venture capital firms, and hedge funds—all signaling a maturing market landscape.
👉 Discover how market cycles shape Bitcoin’s price trajectory and what comes next.
Understanding the Four Stages of a Crypto Bull Market
Stage One: Rebirth (2023–2024)
The first stage of the current bull cycle began between January 2023 and January 2024. Known as rebirth, this period followed the prolonged bear market that left many investors exhausted and skeptical. During this phase:
- Early institutional buyers quietly accumulated BTC at depressed valuations.
- Market sentiment remained cautious, with limited media coverage and public interest.
- Key on-chain metrics like exchange outflows and long-term holder accumulation began to trend upward.
This foundational period laid the groundwork for future growth, driven by structural developments such as the approval of spot Bitcoin ETFs in the U.S. and increasing regulatory clarity.
Stage Two: FOMO and Excitement (February 2025 – Early November 2025)
From February through early November 2025, the market transitioned into the second stage—excitement. In this phase:
- Several major cryptocurrencies neared or surpassed their all-time highs.
- Quarterly narratives began to emerge, including real-world asset tokenization, decentralized AI infrastructure, and Layer 2 scaling solutions.
- Retail participation increased, though still lagging behind institutional moves.
Despite growing momentum, many traditional asset allocators remained underexposed to digital assets—until recently.
Stage Three: Euphoria Begins (Late November 2025 Onward)
As of late November 2025, experts confirm that Bitcoin has entered Stage Three: Euphoria. This is where the market truly accelerates:
- Asset allocators wake up to their crypto underexposure and begin deploying capital rapidly.
- Venture capital firms and hedge funds start announcing large-scale new funds focused exclusively on blockchain and Web3 projects.
- Late-stage venture investing—dormant for over two years—returns with renewed vigor.
- IPO markets reopen for blockchain-enabled companies, allowing Series B through D rounds to raise substantial funding.
- Even Series A deals close faster than ever, attracting top-tier global founders to build in the space.
During this stage, nearly every asset in the crypto market experiences upward movement. New narratives spawn new tokens, creating daily winners across sectors like DeFi, NFTs, and decentralized identity.
“In the third stage of a bull market, everyone feels like a genius,” says a veteran crypto strategist. “But the real test comes when speculation overtakes fundamentals.”
👉 See how top investors position themselves during euphoric market phases.
Why Institutional Involvement Changes Everything
The recent 30%+ rally isn’t just retail-driven—it reflects a structural shift in capital flows. After the U.S. election, institutional players realized their portfolios lacked meaningful exposure to Bitcoin and other digital assets.
Now, they’re acting fast:
- Pension funds and family offices are allocating 3–5% of assets to crypto.
- Traditional finance (TradFi) executives are joining blockchain startups as advisors or executives.
- Private equity firms are exploring tokenized fund structures compliant with SEC guidelines.
This influx of institutional capital fuels not only Bitcoin but also early-stage innovation across the Web3 stack.
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What Comes Next? The Final Phase of the Bull Cycle
Experts project that within the next 12 months, the market will enter Stage Four: Full-blown mania.
In this final phase:
- Public belief solidifies around the idea that “prices only go up.”
- Speculators—not fundamentals—drive valuations.
- Startups with minimal traction raise millions based solely on hype.
- Some altcoins experience 10x gains in a single week.
- Venture capitalists skip due diligence, chasing quick exits.
While lucrative for early entrants, this stage carries high risk. History shows that excessive leverage, overconfidence, and irrational exuberance often precede major corrections.
FAQ: Your Questions Answered
Q: What triggers the shift from Stage Three to Stage Four in a crypto bull market?
A: The transition typically occurs when retail speculation dominates trading volume, media frenzy peaks, and non-crypto-native investors pour money in without research—signaling widespread euphoria.
Q: Is it too late to invest if Bitcoin is approaching $90K?
A: Not necessarily. While early gains have already occurred, significant upside may remain during Stage Four. However, risk management becomes crucial—consider dollar-cost averaging and portfolio diversification.
Q: How can I identify when the market is entering mania mode?
A: Watch for red flags like celebrity-endorsed memecoins going viral, rampant social media hype, empty-product launches raising millions, and mainstream headlines declaring “the end of fiat.”
Q: Are venture capital investments returning to crypto?
A: Yes. After a two-year lull, major VC firms are relaunching blockchain-focused funds, signaling confidence in long-term adoption and technological maturity.
Q: What role do Bitcoin ETFs play in institutional adoption?
A: Spot Bitcoin ETFs provide regulated, accessible exposure for traditional investors, reducing barriers to entry and increasing legitimacy in mainstream finance.
👉 Stay ahead of market shifts with real-time data and expert insights.
Final Thoughts: Opportunity Meets Caution
The current surge in Bitcoin’s price—driven by post-election optimism and institutional awakening—marks a pivotal moment in the 2025 bull run. With the market now firmly in its third stage, opportunities abound for informed participants.
However, as history reminds us, every great bull run eventually meets reality. The same forces that propel prices higher—greed, fear of missing out, and unchecked speculation—can also lead to sharp reversals.
For those navigating this cycle, success won’t come from chasing pumps but from understanding phases, managing risk, and staying grounded amid euphoria.
Whether you're an experienced builder or a newly curious investor, 2025 could indeed be a life-changing year in crypto—if approached with clarity, strategy, and discipline.