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The cryptocurrency sector is entering the new year with renewed vigor and a heightened sense of assurance as Bitcoin, Ether, and XRP approach new all-time highs.
However, as always, forecasting the events that 2025 may bring and their potential impact on the markets remains challenging.
Cryptonews has gathered a group of specialists to share their insights on the most significant risks confronting the cryptocurrency industry in the upcoming year, with economic factors, criminal activity, and closer connections to Wall Street ranking among the top concerns.
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‘It’s the Economy, Stupid’
YouHodler’s market chief, Ruslan Lienkha, informed Cryptonews that macroeconomic elements present a considerable threat.
“A potential recession in the U.S., persistently elevated inflation, or a slower rate of cuts by the Federal Reserve could lead to widespread corrections in both equity and cryptocurrency markets. These elements will greatly affect investor sentiment and liquidity, potentially hindering the performance of digital assets.”
Record highs on Wall Street in 2024 have been driven by quantitative easing, low interest rates, and post-COVID liquidity; however, CoinMarketCap’s head of research, Alice Liu, notes that “many analysts believe this 15-year expansion may be approaching a correction, indicating the peak of a financial supercycle.”
She mentioned to Cryptonews that the challenges facing U.S. markets align with the cyclical nature of cryptocurrencies, which are significantly influenced by Bitcoin halvings. The latest occurrence in April 2024 reduced the daily influx of new BTC into circulation by 50%.
“This distinctive macroeconomic environment — if it unfolds positively — is likely to draw substantial capital inflows into the cryptocurrency market. Investors looking for diversification or higher returns may find digital assets particularly attractive during this time. Consequently, the crypto market could witness heightened bullish momentum, presenting considerable growth opportunities alongside increased volatility. However, if the global market experiences a significant correction, this could lead to a decline in the crypto market before it reaches its peak halving cycle bull run.”
OKX Europe’s general manager, Erald Ghoos, believes a recession “would be detrimental for digital assets overall,” adding:
“These external factors pose risks for all investments and could have significant long-term and immediate implications for the industry’s success.”
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Coinme CEO and co-founder Neil Bergquist expressed to Cryptonews his concerns regarding the “increased interconnectedness” between Wall Street and the cryptocurrency markets, a situation intensified by the introduction of Bitcoin ETFs. He stated:
“Historically, Bitcoin was viewed as a safe haven, and its price often showed little correlation with traditional assets like stocks and real estate. The Federal Reserve’s decision to scale back on planned rate cuts in 2025 resulted in a decline in the crypto markets, mirroring the broader financial markets. As institutional adoption increases, Bitcoin’s appeal as a diversified, non-correlated asset is at risk.”
Three Other Threats to Watch
In addition to economic indicators, our Cryptonews panel identified three other challenges that could reverse the fortunes of digital assets next year.
Bitcoin Supercycle author Michael Terpin posits that the initial year of Donald Trump’s presidency could be seen as both a threat and an opportunity, adding:
“Price increases could face setbacks if he fails to fulfill his campaign promises to reduce regulation, incentivize American crypto companies, and establish a U.S. Bitcoin reserve.”
JAN3 CEO Samson Mow indicated that “the biggest threat to crypto is Bitcoin,” stating:
“We already observe Ethereum consistently declining against Bitcoin, signaling that the market recognizes there is truly no second best. Even with numerous altcoin ETFs launching, demand for them is lackluster, and outflows are predominant. Bitcoin will not only undermine altcoins but also gold and real estate.”
Chainalysis director of investigations Phil Larratt highlighted statistics indicating that funds stolen by malicious actors in 2024 have increased by 21% year over year, reaching $2.2 billion.
“The next year will be crucial for addressing crypto-related crime, including cyber threats such as crypto hacking. As we enter a bull market, it is vital that we prevent these incidents from escalating, especially as bad actors are now targeting centralized services with specific private key compromises.”
Experienced crypto investors are well aware that bull markets do not guarantee a steady rise for BTC and ETH. Significant increases are often accompanied by sharp pullbacks and challenging corrections that test their determination.
While there may be much to feel positive about in 2025, it is inevitable that some drama and uncertainty will arise along the journey.
The post Revealed: The Biggest Threats Facing Crypto in 2025 appeared first on Cryptonews.
