The crypto industry is beginning the new year with a spring in its step — and a newfound sense of confidence now the likes of Bitcoin, Ether and XRP are flirting with fresh all-time highs.
As ever though, it’s difficult to predict the events that 2025 may have in store… and how they could affect the markets.
Cryptonews has assembled a panel of experts to give their opinions on the biggest threats facing the crypto industry in the coming year — with the economy, crime, and closer ties to Wall Street all topping the ‘It’s the Economy, Stupid’
YouHodler’s chief of markets, Ruslan Lienkha, told Cryptonews that macroeconomic factors are a major risk.
“A potential U.S. recession, persistently high inflation, or a slower pace of rate cuts by the Federal Reserve could trigger broad corrections in both equity and crypto markets. These factors will significantly influence investor sentiment and liquidity, potentially dampening the performance of digital assets.”
Record highs on Wall Street in 2024 have been fueled by quantitative easing, low interest rates and post-COVID liquidity, but CoinMarketCap’s head of research Alice Liu says “many analysts believe this 15-year expansion may be nearing a correction, signaling the peak of a financial supercycle.”
She told Cryptonews that the headwinds facing U.S. markets coincide with crypto’s own cyclical dynamics, which are heavily influenced by Bitcoin halvings. The most recent event back in April 2024 slashed the number of new BTC entering circulation each day by 50%.
“This unique macroeconomic setup — if it plays out positively — is likely to attract significant capital inflows into the cryptocurrency market. Investors seeking diversification or higher returns may find digital assets particularly appealing during this period. As a result, the crypto market could experience intensified bullish momentum, offering substantial growth opportunities alongside heightened volatility. However, if the global market undergoes a significant correction, this could trigger a drop in the crypto market before it reaches its peak halving cycle bull run rally.”
OKX Europe’s general manager Erald Ghoos thinks a recession “would be bearish for digital assets overall,” adding:
“These external factors pose a risk for all investments and could have significant long-term and immediate results for the success of the industry.”
Coinme CEO and co-founder Neil Bergquist told Cryptonews that he’s concerned about the “increased interconnectedness” between Wall Street and the crypto markets, which has been exacerbated by the launch of Bitcoin ETFs. He says:
“Traditionally, Bitcoin was seen as a safe haven, and its price was often not correlated with traditional assets like stocks and real estate. The Fed pulling back on planned rate cuts in 2025 saw the crypto markets drop in line with the broader financial markets. As institutional adoption grows, Bitcoin’s value prop as a diversified, non-correlated asset is at risk.”
Three Other Threats to Watch
Beyond economic data, our Cryptonews panel identified three other issues that could send digital assets into reverse next year.
Bitcoin Supercycle author Michael Terpin argues that the first 12 months of Donald Trump’s presidency could be regarded as a threat as well as an opportunity, adding:
“Price increases could have a setback if he fails to deliver on his campaign promises to lessen regulation, incentivize American crypto companies, and the creation of the US Bitcoin reserve.”
JAN3 CEO Samson Mow told us that “the biggest threat to crypto is Bitcoin,” saying:
“We already see Ethereum in constant decline against Bitcoin and it signals that the market understands that there really is no second best. Even with many altcoin ETFs coming online, demand for them is dismal and flows are mostly out. Bitcoin will not only demonetize alts but also gold and real estate.”
Chainalysis director of investigations Phil Larratt pointed to figures that show funds stolen by bad actors in 2024 have surged by 21% year on year — hitting $2.2 billion.
“The next 12 months will be important for clamping down on crypto-related crime, including cyber threats like crypto hacking. As we experience a bull market, it’s critical that we don’t let these types of incidents drastically increase, particularly where bad actors are now seeking to breach centralized services with targeted private key compromises.”
Seasoned crypto investors know all too well that bull markets don’t mean the likes of BTC and ETH will rise in a straight line. Double-digit rises are often accompanied by brutal pullbacks and painful corrections that test their resolve.
While there may be a lot to be optimistic about in 2025, it’s inevitable that there’ll be some drama and uncertainty along the way.