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06/14 17:51

Crypto market stabilizes as US economic woes begin

Crypto market stabilizes as US economic woes begin to improve

Bitcoin and the broader crypto markets may enter a stronger phase in the second half of 2025 as macroeconomic risks recede and investor sentiment improves.

That's the conclusion of a new market analysis prepared by David Duong, head of research at Coinbase, which suggests that digital assets are on track to record potential gains in the coming months.

Duong believes the worst of recent economic turmoil, such as tariff uncertainty and recession fears, is behind us. As the U.S. government shifts toward more optimal and market-oriented policies, he expects risk assets, including cryptocurrencies, to rally again once fiscal initiatives materialize later this summer.

At the start of 2025, Coinbase predicted that digital assets would bottom out in the first half of the year, setting the stage for a new rally in the second half. Despite the recent price recovery, Duong maintains that there is room for further growth in the next few months.

But he warned that the road ahead would not be without potential obstacles. The sharp rise in yields on long-term U.S. Treasury bonds, especially in the 10- to 30-year range, could tighten financial conditions more than expected. In May, the yield on the 30-year Treasury note hit 5.15%, its highest level in two decades. If borrowing costs continue to rise rapidly, that could put pressure on both equity and credit markets and hamper broader economic growth.

While such a scenario could cause volatility in risk assets, Duong noted that it could spur demand for traditional safe havens, including gold and Bitcoin. In contrast, altcoins could struggle in such conditions as capital seeks refuge in more established assets that retain their value.

In short, the macroeconomic context appears to be improving, but the balance between optimism and caution remains key to shaping the trajectory of the crypto market for the rest of the year.

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