US economic recession, circular crypto economy


While most analysts expect the crypto bull cycle to last until the end of 2025, concerns about the U.S. recession and the “circulating” economy of cryptocurrencies may still threaten the valuation of cryptocurrencies.

Despite recent market corrections, most crypto analysts expect the Bull Cycle to peak after the third quarter of 2025, while Bitcoin (Bitcoin) (BTC) Price forecast From $160,000 arrive Over $180,000.

Arthur Breitman, co-founder of Tezos, said that in addition to external concerns, such as the potential recession of the world’s largest economy, the biggest risk for a specific industry is the “circulating” nature of its economy.

“Inside the industry, the main risk is that the industry is still looking for the foundation. Everything is still very round,” Brettman told Cointelegraph.

“For example, if you look at defi, the financial purpose is to fund something (…), but if the only thing challenging finance is to be circular, that is circular.”

“If the only reason people want to buy your token is because they feel that others want to buy this token, that’s looping.”

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This is in stark contrast to the stock market, which is “built on revenue-generating businesses”, which makes the crypto industry “lack of foundation” one of the major industry threats, Breitman added.

Other industry insiders have also criticized the crypto economy, especially in connection with the latest Memecoin crashes, which are liquidity triggered from more established cryptocurrencies.

Solana flows out. Source: DeBridge, Binance Research

Solana takes more than $485 million hit February outflow value after the recent trend Memecoin carpet pull Triggered investors’ flights to “safe” with some capital flowing into Memecoins on the BNB chain, e.g. Broccoli membersinspired by Changpeng Zhao’s dog.

Related: Rising $219B Stablecoin Supply Signal Medium Cycle, Not the Top of the Market

U.S. recession concerns are the biggest external risk for cryptocurrencies: Tezos co-founder

Apart from industry-specific events, greater macroeconomic problems, including the potential U.S. recession, threaten traditional and cryptocurrency markets.

“In terms of macro events, I still think we can see the recession,” Bretman said.

“There are a lot of bullish winds in the market, but there are still a lot of traditional recession indicators that have been flashing for a while. So, I don’t think you can rule it out.”

He added that the cryptocurrency market is still significantly associated with technology stocks, meaning that the recession will lead to widespread sell-offs.

Related: Libra, Melania creator’s “Wolf of Wall Street” memorial crashed 99%

The current trade war driven by U.S. President Donald Trump’s import tariffs and continued retaliation measures have rekindled concerns about a potential recession.

source: polymer

According to the largest diversified forecast market, more than 40% of market participants are projecting 22% on February 17 this year, which is 22% on February 17. polymer.

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