Crypto market’s biggest risks in 2025: US recession, circular crypto economy
17 Março 2025 - 9:03AM
Cointelegraph


While most analysts expect the crypto bull cycle to continue
until the end of 2025, concerns over an economic recession in the
United States, along with crypto’s “circular” economy, may still
threaten crypto valuations.
Despite the recent market correction, most crypto analysts
expect the bull cycle to peak after the third quarter of 2025, with
Bitcoin (BTC) price predictions
ranging from
$160,000 to above
$180,000.
Beyond external concerns, such as a potential recession in the
world’s largest economy, crypto’s biggest industry-specific risk is
the “circular” nature of its economy, according to Arthur Breitman,
the co-founder of Tezos.
“Within the industry, the main risk is that the industry is
still very much in search of grounding. It’s all still very
circular,” Breitman told Cointelegraph.
“If you look at DeFi, for example, the point of finance is to
finance something [...], but if the only thing that DeFi finances
is more DeFi, then that’s circular,” said Breitman, adding:
“If the only reason people want to buy your token is
because they feel other people will want to buy this token, that's
circular.”
This is in stark contrast to the stock market, which is “built
on revenue-generating businesses,” making the crypto industry’s
“lack of grounding” one of the main industry threats, Breitman
added.
Other industry insiders have also criticized the state of the
crypto economy, specifically related to the latest memecoin
meltdowns, which are siphoning liquidity from more established
cryptocurrencies.
Solana outflows. Source: deBridge, Binance Research
Solana was hit by
over $485 million worth of outflows in February after the
recent wave of memecoin rug
pulls triggered an investor flight to “safety,” with some of
the capital flowing into memecoins on the BNB Chain, such as
the Broccoli
memecoin, inspired by the Changpeng Zhao’s dog.
Related: Rising $219B stablecoin supply signals mid-bull
cycle, not market top
US recession fears are crypto’s biggest external risk: Tezos
co-founder
Beyond industry-specific events, larger macroeconomic concerns,
including a potential US recession, threaten traditional and
cryptocurrency markets.
“In terms of macro events, I still think we could see a
recession,” said Breitman, adding:
“There's a lot of bullish winds for the market, but
there's also a lot of traditional recession indicators which have
been flashing for a while now. So I don't think you can rule it
out.”
Cryptocurrency markets still trade in significant correlation
with tech stocks, meaning that a recession will cause a widespread
sell-off, he added.
Related: Libra, Melania creator’s ‘Wolf of Wall Street’
memecoin crashes 99%
The current trade war concerns, driven by US President Donald
Trump’s import tariffs and continued retaliatory measures, have
reignited concerns over a potential recession.
Source:
Polymarket
Over 40% of market participants expect a recession in the US
this year, up from just 22% a month ago on Feb. 17, according to
the largest decentralized predictions market,
Polymarket.
Magazine: Crypto fans are obsessed with longevity and
biohacking: Here’s why
...
Continue reading Crypto market’s biggest risks in
2025: US recession, circular crypto economy
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