Is 2025 a Crash Year for Crypto? Check Predictions of Industry Leaders

Every market cycle tells a story—but 2025 is shaping up to be a turning point that defines an era. What began as hope for a historic breakout has now collided with the harsh realities of global economics.

Crypto Market News: Is 2025 the Crash Year?

2025 was supposed to be the year of resurgence. With institutional interest at all-time highs, Bitcoin's halving behind us, and regulatory clarity on the horizon, bullish sentiment had reached fever pitch.

But beneath the surface, cracks were forming. Within just weeks, the entire financial landscape has shifted—and cryptocurrency is taking the brunt of the damage.

As someone who’s tracked this industry through every boom and bust, I’ve never seen a convergence of global forces like this.

$11 Trillion Wiped Off Global Markets — and Digital Asset Follows

According to The Kobeissi Letter , U.S. equity markets have lost $11 trillion in value since February 19, 2025. On April 4 alone, the Nasdaq 100 plunged over 6%, marking its worst single-day performance since March 2020.

Source: The Kobeissi Letter X Account

The S&P 500 fell more than 10% in two consecutive sessions, a rare signal seen only six times in history (most recently in 2008, 2020, and 1997).

As equities fell, this markets collapsed in tandem, a correlation that has grown stronger in recent years due to institutional overlap and risk-on sentiment.

Crypto Market 2025 Predictions: Why Crypto is Crashing

Trump’s Reciprocal Tariffs — A Macro Black Swan

People have been continuously asking how the Trump tariff affected the crypto market ? On Wednesday, President Donald Trump announced sweeping reciprocal tariffs on multiple trading partners.

Source: The Kobeissi Letter X Account

This policy catapulted the effective U.S. tariff rate to over 25% — the highest level since the early 1900s, surpassing the infamous Smoot-Hawley Tariff Act levels from the 1930s ( The Kobeissi Letter, X ).

“If these tariffs persist, a recession is no longer avoidable.” — Kobeissi Letter, April 3, 2025

JPMorgan’s Recession Warning Hits Virtual Currency Sentiment

In a widely-circulated report, JPMorgan Chase & Co. revised its U.S. GDP forecast, citing tariffs as a key risk to growth. According to the firm’s chief U.S. economist Michael Feroli (JPMorgan Economic Research, April 2025), real GDP growth for 2025 is now expected to contract by -0.3%, down from previous estimates of +1.3%.

The news sent risk markets into a tailspin. this industry often seen as the highest-beta risk asset, bore the brunt of it.

Robert Kiyosaki Prediction

Kiyosaki's X post reminded his social media followers about the 2013 reprint of Rich Dad's Prophecy. He stated that the book predicted the most significant market crash of all time, adding, "That crash will be in February 2025."

Crypto Market Crash : Bitcoin, Ethereum, XRP Collapse

• Bitcoin (BTC): Crashed to $83,820.85 from ATH of $109,114.88

• Ethereum (ETH): Fell to $1,820.46, down from $4,891.70

• XRP Crash : Dropped to $2.14, nearly 45% off its peak of $3.84

These aren’t ordinary corrections. This is deleveraging under systemic pressure.

Liquidation Bloodbath: $211M Wiped Out in 24H

Source: Coinglass

The strong volatility led to mass liquidation across major exchanges:

• Total Liquidation: $211.63 million

• Traders Liquidated: 78,111 in 24 hours.

• Biggest Liquidation: $5.59 million in ETH/USDT on Binance.

This goes to show the unwinding of leveraged asset positions, particularly in altcoin land.

Why Top Analysts Say “Sell and Leave?”

The sentiment on Polymarket, one of the most accurate prediction tools in this industry, is revealing a shift in mindset:

Source: Polymarket

• Recession odds clearly stats a 60% chance this year.

• On-chain data shows a massive increase in stablecoin inflows—a classic risk-off signal.

• Whale wallets are aggressively offloading altcoins into USDT and USDC.

“The 2025 narrative has collapsed,” said Alex Krüger, macro crypto analyst. “We’re no longer talking about cycles. We’re talking about survival.”

Why Crypto Market Is Going Down?

Unlike prior corrections, this crash is premised on a slow-moving macroeconomic backdrop:

• Inflation is sticky; hence, the Fed is lagging on interest rate cuts.

• Global liquidity is tightening due to trade wars and political instability.

• Investor risk appetite is drying up, with crypto being the riskiest on the radar.

Crypto has never seen a real recession—in 2008, never, even the artificially generated one in 2020 with trillions of dollars in stimulus.

Final Thoughts: Will Crypto Rise?

This may be a generational buying opportunity—but not now.

Now is the time to preserve liquidity, observe macroeconomic developments, and avoid overexposure to risk assets. The post-halving bull thesis may still play out, but first, we must survive the incoming storm.