NEWSLETTER
bitcoin, the largest cryptocurrency in the world, began 2025 with an uncertain base after reaching maximum records at the end of 2024. At the beginning of March, its value had decreased by more than 20% after climbing more than $ 100.00 in December, which increases concerns about the stability of the broader market.
This recession has had domain effects throughout the digital asset space, particularly in ethereum, the spine of the nft market. As bitcoin and ethereum prices slide, questions arise about how the nft sector will answer. With the decrease in market activity, the reduction of investors participation and environmental concerns for resurgence, the nft landscape faces significant challenges.
The decrease has been attributed to economic instability, regulatory pressures and security incidents that have shaken investors' confidence.
Current predictions about bitcoin vs. ethereum
ethereum followed the decrease in bitcoin in early 2025, falling from a maximum of $ 3,688.61 in January to approximately $ 2,090.61 in March, but while this descending trend is aligned with bitcoin's struggles, analysts point out that analysts are different feelings of investors between the two crypts. Some are still optimistic about ethereum's recovery potential, citing historical trends where bitcoin reduction events in 2017 and 2021 were recovered.
The broader utility of ethereum in intelligent contracts and DAPPS also distinguishes bitcoin, with real -world use cases in industries such as online games and digital transactions. In a <a target="_blank" href="https://www.instantcasino.com/ethereum” target=”_blank” rel=”noopener”>ethereum Casino, For example, faster processing times allow players to deposit funds, start playing without delay and withdraw the profits immediately. In addition, ethereum support for intelligent contracts allows automated and demonstrably fair game experiences, which guarantees that the results of the game are fair and transparent.
Despite the recession, both bitcoin and ethereum continue to be widely used in all industries, including Defi, online payments and digital collectibles.
What are the factors that contribute to the decrease in bitcoin?
In early 2025, economic instability played a key role in the bitcoin decline, as a new US policy. 25% import tariffs From Canada and Mexico caused uncertainty in financial markets, which led to a setback of more risky assets such as cryptocurrencies.
At the same time, the Federal Reserve hinted in potential increases in interest rates to stop inflation. Historically, such shares have resulted in a lower investment in digital assets, since investors seek more stable assets, such as bonds and gold.
Cybersecurity also remains an important problem in the cryptographic sector. For example, in February 2025, a popular cryptocurrency exchange suffered a trick of $ 1.5 billion, trembling the confidence of investors. bitcoin on a large scale followed, which contributed more to its decrease in prices.
In addition, institutional investors played an important role in the increase in bitcoin at the end of 2024 through ETF. However, in the first quarter of 2025, ETFs have seen exits greater than $ 1.1 billion, indicating that institutional confidence in bitcoin has weakened and added down pressure on the price of the asset.
How is this affecting the general market?
As bitcoin and ethereum prices fall, the nft market has also seen a decrease in activity. Analysts predict a decrease of approximately $ 75 million in nft market revenues in 2025, which reflects a reduced speculative interest and the precaution of investors. The number of active nft wallets has also constantly decreased for three years, with 2025 continuing this trend. Casual investors are leaving the market, leaving behind a smaller base of dedicated merchants and institutional participants.
The bitcoin recession also revived the debates on the environmental impact of Blockchain technology and some companies and investors are reconsidering their participation in nft due to concerns about the high energy consumption of the chains of work test blocks.
Several nft projects and companies have also felt the effects of bitcoin's recession. For example, RTFKT has announced its closure in early 2025, underlining the struggles facing nft headquarters. Blockchain -based games developers, including Axie Infinity and Otheride, are reducing operating costs due to the reduction of nft assets in the game, and the main nft markets such as OpenSea and Blur have reported a fall in commercial volumes. While the collections established as Bored Ape Yacht Club (BayC) retain a certain market value, smaller nft projects face difficulties in attracting buyers.
bitcoin's volatility is a known characteristic, and its recent decrease does not necessarily indicate a long -term collapse, since some believe that bitcoin could be recovered later in 2025 if the economic conditions stabilize and the feeling of investors improves. The speculative boom has slowed down, and projects focused on practical applications may have better possibilities for long -term survival, but if the nfts can resist the bitcoin recession will depend on how the sector adapts to the demands of evolutionary investors and market conditions.
