Crypto Market Outlook Strengthens as U.S. Economic Clouds Begin to Clear

Bitcoin and broader crypto markets may be entering a stronger phase heading into the second half of 2025, as macroeconomic risks ease and investor sentiment improves.

That’s the takeaway from a new market analysis by Coinbase’s Head of Research, David Duong, who suggests digital assets are poised for potential gains in the coming months.

Duong believes the worst of the recent economic headwinds—such as tariff-related uncertainty and recession fears—may now be behind. With the U.S. government leaning toward more pro-growth, market-friendly policies, he anticipates that risk assets, including crypto, could see a renewed rally as fiscal initiatives materialize later this summer.

Back in early 2025, Coinbase had projected that digital assets would bottom in the first half of the year, setting the stage for a run to new highs in the second half. Despite recent price rebounds, Duong maintains that there’s room for further upside over the next several months.

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However, he warns that the path forward won’t be without potential pitfalls. A sharp climb in long-dated U.S. Treasury yields—particularly in the 10- to 30-year range—could tighten financial conditions more than expected. In May, 30-year yields reached 5.15%, marking the highest level in two decades. If borrowing costs continue to rise rapidly, it could place pressure on both equity and credit markets and challenge broader economic momentum.

While such a scenario could stir volatility across risk assets, Duong notes it may also boost demand for traditional safe havens—gold and Bitcoin chief among them. In contrast, altcoins might struggle under those conditions, as capital seeks shelter in more established store-of-value assets.

In short, the macro backdrop appears to be improving, but the balance between optimism and caution remains key in shaping the crypto market’s trajectory through the rest of the year.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.