Analysts predict the continuation of the crypto market's bull cycle until 2025. However, various factors, such as a US economic recession and the crypto economy's internal uncertainties, may threaten these forecasts.
Crypto Market Forecasts Until 2025
Most analysts expect the bull cycle on the crypto market to peak after Q3 2025, with Bitcoin prices predicted to range from $160,000 to above $180,000.
Circular Crypto Economy
Arthur Breitman, co-founder of Tezos, identifies the 'circular' nature of the crypto economy as a major risk. 'If the only reason people want to buy your token is because they feel other people will want to buy it, that's circular,' said Breitman.
US Recession Risks
In addition to industry-specific concerns, macroeconomic threats, such as a potential US recession, could negatively impact both traditional and crypto markets. Over 40% of market participants expect a US recession this year, according to Polymarket, a leading decentralized prediction market.
While the crypto market has so far avoided major disruptions, it remains influenced by both internal and external economic threats. It is important to stay vigilant and consider all potential risk factors in investment strategies.