The cryptocurrency industry is starting the new year with strong momentum — and a renewed sense of confidence as Bitcoin, Ether, and XRP approach new record highs. However, as always, it is difficult to predict what events may arise in 2025… and how they may impact the market.
Cryptonews has assembled a panel of experts to weigh in on the biggest threats facing the cryptocurrency industry in the coming year — with the economy, crime, and closer ties to Wall Street topping the list.
'It's the Economy, Stupid'
Ruslan Lienkha, market director at YouHodler, told Cryptonews that macroeconomic factors pose a significant risk.
“A potential U.S. recession, persistent high inflation, or a slower pace of interest rate cuts by the Federal Reserve could trigger widespread corrections across both the stock and cryptocurrency markets. These factors will significantly impact investor sentiment and liquidity, potentially diminishing the performance of digital assets.”
Record highs on Wall Street in 2024 were driven by quantitative easing, low interest rates, and post-COVID liquidity, but Alice Liu, head of research at CoinMarketCap, said "many analysts believe that this 15-year expansion may be nearing a correction phase, signaling the peak of the financial supercycle."
She told Cryptonews that the hurdles faced by the U.S. market coincide with the cyclical momentum of cryptocurrency, heavily influenced by the Bitcoin halving event. The most recent event in April 2024 cut the daily amount of new BTC entering circulation by 50%.
“This unique macroeconomic setup — if it plays out positively — has the potential to attract significant capital flows into the cryptocurrency market. Investors seeking diversification or higher returns may find digital assets particularly appealing during this phase. Consequently, the cryptocurrency market could experience a stronger bullish momentum, providing substantial growth opportunities along with increased volatility. However, if the global market undergoes a significant correction, this could lead to a downturn in the cryptocurrency market before reaching the peak of the halving cycle bull run.”
Erald Ghoos, CEO of OKX Europe, believes that economic recession “will be detrimental to digital assets in general,” he added:
“These external factors pose risks to all investments and can lead to significant and long-lasting outcomes for the success of the industry.”
Neil Bergquist, CEO and co-founder of Coinme, told Cryptonews that he is concerned about the "increasing linkage" between Wall Street and the cryptocurrency market, which has worsened since the launch of the Bitcoin ETF. He stated:
“Traditionally, Bitcoin is seen as a safe haven, and its price often does not correlate with traditional assets like stocks and real estate. The Fed's pullback from planned interest rate cuts in 2025 has caused the cryptocurrency market to decline along with the broader financial market. As institutional adoption increases, Bitcoin's value proposition as a diverse, uncorrelated asset is at risk.”
Three Other Threats to Watch
In addition to economic data, our Cryptonews team has identified three other issues that could reverse the trend for digital assets in the coming year.
Michael Terpin, author of the Bitcoin Supercycle, believes that the first 12 months of Donald Trump's presidency could be viewed as both a threat and an opportunity, he added:
“Price increases may be affected if he fails to deliver on his campaign promise to loosen regulations, encourage U.S. cryptocurrency companies, and create a U.S. Bitcoin reserve fund.”
Samson Mow, CEO of JAN3, told us that “the biggest threat to cryptocurrency is Bitcoin,” he said:
“We have seen Ethereum consistently decline against Bitcoin, and this signals that the market understands there truly is no second option. Even with many altcoin ETFs launching, demand for them remains tepid and the flow of funds is primarily stagnant. Bitcoin is not only going to wipe out altcoins but also gold and real estate.”
Phil Larratt, the investigations director at Chainalysis, points out the figures showing that the amount stolen by bad actors in 2024 has increased by 21% compared to the same period last year — reaching $2.2 billion.
“The next 12 months will be critical for controlling cryptocurrency-related crime, including cyber threats such as crypto hackers. As we experience a bull market, it is essential that we do not let these types of incidents surge, especially as bad actors are currently looking to compromise centralized services by targeting private keys.”
Experienced cryptocurrency investors know that a bull market does not mean that BTC and ETH will rise linearly. Double-digit gains often come with brutal pullbacks and painful corrections that test their resolve. While there is much to be optimistic about in 2025, it is inevitable that there will be some volatility and instability along the way.
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