Bitcoin News

Story: Coinbase Predicts Crypto Growth in 2025 but Warns of Bitcoin Debt Risks

By Dan Saada

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The second half of 2025 is shaping up to be a positive period for the crypto market, according to a new report from Coinbase Institutional.

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Bullish Outlook for Bitcoin and Crypto Markets

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David Duong, Head of Research at Coinbase Institutional, shared a positive forecast for the rest of the year.

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Coinbase believes that recent fears about a recession in the U.S. are fading. New economic data shows stronger-than-expected growth, and the impact of early 2025 trade issues…

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Corporate Bitcoin Buying Raises Concerns

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While more companies are adding Bitcoin to their balance sheets, Coinbase warns this trend may carry hidden risks.

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This leveraged strategy has become more popular since new accounting rules took effect in late 2024.

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However, Duong warns that this model could cause trouble if crypto prices drop sharply. Firms using leverage might be forced to sell assets quickly to meet debt obligations.

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“Systemic risks are rising with these debt-backed crypto buying strategies,” Duong wrote. “The good news is that most of the outstanding debt isn’t due until 2029 or 2030, and…

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Bitcoin Wallet Growth and Ownership Risks

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Coinbase also noted a sharp increase in the number of Bitcoin wallets holding more than $1 million worth of BTC.

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For instance, Sygnum, a regulated digital asset bank, recently expressed concern that the growing number of large holders might weaken Bitcoin’s credibility as a potential…

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On the regulatory front, Coinbase sees meaningful progress. After years of unclear rules and “regulation by enforcement,” 2025 is shaping up to be a turning point for U.S.

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Another proposed law, the CLARITY Act, aims to define the roles of the SEC and CFTC in overseeing the crypto industry.

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Meanwhile, the SEC is reviewing around 80 crypto ETF applications, including funds linked to major altcoins like Solana, XRP, Litecoin, and Dogecoin.

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