Crypto Gains In 2025: When Should You Cash Out?

While analysts predict 2025 to be the best year for crypto and the following 2026 to see a bearish cycle, your crypto investment should follow a targeted strategy. Have a price target, select long or short strategies, and analyze RSI to know the perfect selling time.

The crypto market is going through a historic bull market at the end of 2024. Since November, Bitcoin has surged by 50%, reaching its long-awaited $100,000 milestone on December 5. The altcoin season is also in full swing, with Ethereum nearly $4,000 and XRP reaching its highest value in over six years. 

So now that the bull market is unfolding, when will the corrections begin? When should we predict another bearish cycle to return, and when would be the optimal time for you to cash out? Let’s explain.

When will the next crypto bear market be?

There’s a common perception that crypto goes through a four-year cycle. It’s becoming very evident that 2025 will likely be one of the best years for crypto due to the unfolding macroeconomic factors. For instance, we will see several pro-crypto regulations in the US, as promised by President-elect Donald Trump during his campaign.

Major public companies like MicroStrategy and Marathon Digital have also continuously accumulated Bitcoin even when it was beyond $95,000. This shows that these corporations are aiming for a much bigger bullish cycle. So, in that sense, 2025 should be the last year of the bullish cycle, and 2026 would see a bearish signal return.

However, the idea of a four-year crypto cycle has its roots in Bitcoin’s halving events. These occur roughly every four years, reducing the block reward miners receive by half. Historically, this mechanism has impacted Bitcoin’s price dynamics, leading to a pattern many call the “four-year cycle”.

Here’s a breakdown of how the cycle seems to play out historically:

1. Year of the halving: Bitcoin halvings tend to trigger supply shocks. Prices often begin to rise as traders anticipate a reduced supply of Bitcoin.
2. Bull market: A significant rally typically follows the halving (which we are seeing in 2024). This period often peaks within 12-18 months as FOMO (fear of missing out) drives massive retail and institutional buying.
3. Correction and consolidation: After euphoric peaks, the market often corrects sharply. This is when over-leveraged positions get liquidated, and prices consolidate at lower levels.
4. Bear market: Markets cool down further, and attention shifts away from crypto. Building during this quieter period often sets the stage for the next cycle.

But is this pattern fixed?

Not exactly. While the four-year cycle has held true for Bitcoin’s first three halvings (2012, 2016, and 2020), there’s no guarantee this pattern will persist indefinitely. The crypto market has evolved with increased adoption, institutional involvement, and diverse use cases beyond Bitcoin. External macroeconomic factors, such as interest rates or regulatory changes, could also disrupt this cycle.

For now, many traders and analysts see the four-year framework as a useful guideline, but it’s not a rule set in stone.

When should you sell your crypto?

To understand when to sell your crypto, you must set a target. Either go long or short.

Going short and going long are trading strategies used to profit from price movements in crypto markets. Here’s how they work:

Going long

• When you go long, you’re betting that the price of a cryptocurrency will increase.
• This usually involves buying a crypto asset outright or entering into a long position using derivatives like futures or margin trading.
• If the price rises, you can sell it later at a higher price and pocket the difference as profit.

You buy Bitcoin at $100,000, expecting it to rise to $135,000. If the price reaches $135,000, you sell and earn $35,000 in profit (minus fees).

Going short

• When you go short, you’re betting that the price of a cryptocurrency will decrease.
• Shorting typically involves borrowing the asset from an exchange or broker, selling it at the current market price, and buying it back later at a lower price to return it.
• If the price drops, you profit from the difference between the selling price and the repurchase price.

You short Bitcoin at $50,000, expecting it to drop to $40,000. You sell at $50,000, then buy it back at $40,000, making $5,000 in profit (minus fees).

Set a clear profit target before you buy. For example, if your goal is a 50% return, sell once you reach that threshold. Locking in profits at predefined points helps you avoid emotional decisions during market swings.

Here are a few more signs you should always consider:

If the market shows signs of reversal

• Watch for technical indicators like overbought conditions (e.g., RSI above 70) or bearish chart patterns (e.g., head and shoulders).
• If the market momentum shifts or key support levels break, it might signal a good time to sell.

When fundamentals change

• Sell if the project loses development activity, faces regulatory threats, or delivers poor updates.
• Exit when you notice diminishing long-term potential.

To rebalance your portfolio

• If crypto becomes an outsized portion of your portfolio due to rapid gains, selling a portion can rebalance your risk exposure.
• Diversify into other assets to protect gains.

When you need the funds

• Crypto markets are highly volatile. If you need liquidity for expenses or investments, consider taking profits or exiting to avoid being forced to sell in a downturn.

During extreme FOMO

• Selling during market euphoria, where prices feel unsustainably high, can help you capture gains before a correction.
• Historical bull runs often end with sharp declines.

What to avoid

• Panic selling: Don’t sell out of fear during temporary dips if you believe in the long-term value of the asset.
• Emotional decisions: Stick to a clear plan rather than reacting impulsively.

Consider selling in increments rather than all at once. This strategy (called scaling out) allows you to secure profits while leaving some capital to ride potential future gains.

1. 01.

   How do I know when to sell my crypto?

   

   Sell when you’ve hit your profit target, need funds, or notice market reversals. Monitor technical indicators, portfolio balance, and project fundamentals. Analyze the RSI of an asset. Above 60-70 usually means that the asset is overbrought and might see corrections. However, avoid emotional or panic-driven decisions.
   

2. 02.

   When should you cash out crypto early?

   

   Cashing out early makes sense when you’ve achieved a financial target or need funds for personal reasons. It’s also a good idea if market conditions become highly volatile or if you see signs of a significant downturn. For example, if a major regulatory announcement creates uncertainty or if the broader market sentiment shifts to bearish, taking profits early can safeguard your investment.

3. 03.

   Should I cash out crypto in 2025 or HODL?

   

   The decision to cash out or hold depends on your investment goals and risk tolerance. If you believe in crypto’s long-term growth potential, holding might align with your strategy. However, if 2025 shows signs of market peaks, such as unsustainable price surges or excessive euphoria, it could be wise to secure some gains. Monitor market trends closely and make a decision based on research and your financial objectives.