{"id":125224,"date":"2025-03-17T12:15:27","date_gmt":"2025-03-17T12:15:27","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125224"},"modified":"2025-03-17T12:15:27","modified_gmt":"2025-03-17T12:15:27","slug":"crypto-markets-biggest-risks-in-2025-us-recession-circular-crypto-economy","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125224","title":{"rendered":"Crypto market\u2019s biggest risks in 2025: US recession, circular crypto economy"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsWhile 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\u2019s \u201ccircular\u201d economy, may still threaten crypto valuations.<br \/>\nDespite 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.<br \/>\nBeyond external concerns, such as a potential recession in the world\u2019s largest economy, crypto\u2019s biggest industry-specific risk is the \u201ccircular\u201d nature of its economy, according to Arthur Breitman, the co-founder of Tezos.<br \/>\n\u201cWithin the industry, the main risk is that the industry is still very much in search of grounding. It\u2019s all still very circular,\u201d Breitman told Cointelegraph.<br \/>\n\u201cIf you look at DeFi, for example, the point of finance is to finance something [&#8230;], but if the only thing that DeFi finances is more DeFi, then that\u2019s circular,\u201d said Breitman, adding:<br \/>\n\u201cIf the only reason people want to buy your token is because they feel other people will want to buy this token, that&#8217;s circular.\u201d<br \/>\nThis is in stark contrast to the stock market, which is \u201cbuilt on revenue-generating businesses,\u201d making the crypto industry\u2019s \u201clack of grounding\u201d one of the main industry threats, Breitman added.<br \/>\nOther 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.<br \/>\nSolana outflows. Source: deBridge, Binance ResearchSolana was hit by over $485 million worth of outflows in February after the recent wave of memecoin rug pulls triggered an investor flight to \u201csafety,\u201d with some of the capital flowing into memecoins on the BNB Chain, such as the Broccoli memecoin, inspired by the Changpeng Zhao\u2019s dog.<br \/>\nRelated: Rising $219B stablecoin supply signals mid-bull cycle, not market top<br \/>\nUS recession fears are crypto\u2019s biggest external risk: Tezos co-founder<br \/>\nBeyond industry-specific events, larger macroeconomic concerns, including a potential US recession, threaten traditional and cryptocurrency markets.<br \/>\n\u201cIn terms of macro events, I still think we could see a recession,\u201d said Breitman, adding:<br \/>\n\u201cThere&#8217;s a lot of bullish winds for the market, but there&#8217;s also a lot of traditional recession indicators which have been flashing for a while now. So I don&#8217;t think you can rule it out.\u201d<br \/>\nCryptocurrency markets still trade in significant correlation with tech stocks, meaning that a recession will cause a widespread sell-off, he added.<br \/>\nRelated: Libra, Melania creator\u2019s \u2018Wolf of Wall Street\u2019 memecoin crashes 99%<br \/>\nThe current trade war concerns, driven by US President Donald Trump\u2019s import tariffs and continued retaliatory measures, have reignited concerns over a potential recession.<br \/>\nSource: PolymarketOver 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.<br \/>\nMagazine: Crypto fans are obsessed with longevity and biohacking: Here\u2019s why<a href=\"https:\/\/cointelegraph.com\/news\/crypto-bull-cycle-threatened-by-us-recession-circular-economy?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsWhile 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\u2019s \u201ccircular\u201d&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125224"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125224"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125224\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125224"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}