The crypto market in 2025 is under significant pressure not only from macroeconomic factors such as interest rates and tax policies but also from a series of geopolitical hotspots spreading globally.
The Russia-Ukraine war has extended into its fourth year, causing energy and food prices to remain volatile, pushing investors into a defensive stance. Meanwhile, tensions between Israel and Iran and the conflict between India and Palestine create a domino effect in the Middle East and South Asia, stirring up risk-averse sentiment. The situation between Thailand and Cambodia is also escalating from border disputes to militaristic hardline statements. In East Asia, the two Koreas are tense, while China and Taiwan continuously maneuver warships and conduct exercises near sensitive borders.
All these fluctuations have led global investors to rush to find safe havens. Gold prices are rising, the USD is strengthening, while the crypto market is witnessing a clear polarization. Bitcoin is seen as 'digital gold' but has not yet demonstrated this role distinctly in the early stages of the crisis. Many altcoins have even lost liquidity as funds flee from risky assets.
However, it is precisely in this chaotic context that crypto can transform. If the fighting and tensions continue to prevent people in unstable regions from accessing traditional banking systems, they may turn to stablecoins or decentralized asset storage methods. The rise of currencies not controlled by any government will attract more attention as trust in institutions declines.
In summary, crypto is not immune to geopolitics, but it is precisely in chaos that it can demonstrate its core nature: a borderless, decentralized financial system that is not manipulated by any national power.
