#CryptoMarketDip 🕯 How changes in the global economy will affect the crypto market
The year 2025 promises to be crucial for the crypto market against the backdrop of global changes in the economy.
In Japan, the end of yield curve control (YCC) policy and the first rate hike since 2007 have created prerequisites for further stabilization of the economy. However, the threat of inflation exceeding 2% remains. A possible rate hike by the Bank of Japan may prompt investors to rethink their portfolios, which will also affect the demand for cryptocurrencies.
In Europe, the narrowing of spreads on government bonds (EGB) against the backdrop of bullish sentiment in 2024 indicates positive expectations. However, the growing financial needs of France, where borrowing is expected to increase by €30 billion, could exacerbate market volatility. Cryptocurrencies, traditionally seen as a means of hedging risks, may benefit from such sentiments.
Britain is facing high inflation significantly exceeding the indicators of most G10 countries. This creates conditions for further weakening of the pound, which may stimulate interest in stablecoins and other digital currencies as tools for preserving value.
An additional factor will be the attention to the monetary decisions of central banks. A tight policy and rising rates may make traditional assets less attractive, creating additional demand for cryptocurrencies.