According to Nic Puckrin, the U.S. Has a 40% chance of entering a recession in 2025. While not deemed probable, ongoing trade wars and macroeconomic instability contribute to heightened uncertainty for risk-on assets such as cryptocurrencies.

The analyst forecasts two Federal Reserve interest rate cuts of 0.25% each in 2025. However, these anticipated changes could create further pressure on cryptocurrency prices, especially Bitcoin, which is sensitive to market sentiment.

Recent investor behavior has seen capital shift from U.S. Markets to European ones, causing a drop in the U.S. Dollar Index. This strategic reallocation may result in increased volatility within the crypto markets, reflecting broader economic conditions.