DeutschBitcoin is scratching at its all-time high, Ethereum is following suit – and the entire crypto market has doubled in just one year. The market capitalization is now almost four trillion US dollars. This time, the drivers of the crypto rally are not only risk-loving private investors, but above all hedge funds, asset managers and even pension funds. Billions are flowing into digital assets, and prices are rising almost daily. But the greater the euphoria, the greater the fear of a crash. The central question: When will the bubble burst?
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Institutional investors are considered a stability factor. They bring seriousness and large sums. At the same time, however, they make the market more susceptible to abrupt corrections. Anyone who remembers the boom of the dot-com bubble will feel a sense of déjà vu, as Thorsten Wittman also gives his assessment in the Presseportal.
Crypto Rally 2025 – and the Fear of the Big Bang
The underlying conditions are delicate. Debt is rising worldwide, geopolitical tensions are weighing on the markets, and classic indicators such as the Buffett indicator show overheating. Even Warren Buffett now holds more than half of Berkshire’s billions in cash – for fear of buying in too expensively. If this caution is applied to the crypto rally 2025, euphoria could quickly turn into disillusionment here too. Especially since safe US government bonds with a yield of around five percent offer attractive alternatives.
The focus is on new spot ETFs on Bitcoin and Ethereum. For the first time, they also enable pension funds and foundations in the USA to have simple, regulated access. Billions of dollars are flowing into the market in this way. In addition, there are classic crypto funds and even tokenized government bonds. Names like Ondo Finance, Franklin Templeton or Maple are behind this movement.
Related to the topic: Bitcoin fan Ray Dalio warns of «economic heart attack»
The list is long: rising interest rates, capital outflows from ETFs, excessive use of leverage, regulatory intervention or problems with stablecoins. In addition, there are unpredictable «Black Swans» – wars, banking crises or crashes on the stock markets. New is also the influence of listed companies that hold billions of dollars worth of Bitcoin. If one of these companies comes under pressure, mass sales threaten during the crypto rally 2025.
Bitcoin, Ethereum and Co. Increasingly in Focus
A decline of 20 to 30 percent for Bitcoin or Ethereum is considered normal. Smaller coins can crash even more violently. In a real bear market, losses of 50 percent or more are even possible. Institutional players amplify the fluctuations upwards as well as downwards. For private investors, this means: Anyone who blindly follows the crowd risks a lot. A clear strategy is crucial. The cost-average effect has proven its worth – regularly investing small amounts to compensate for fluctuations. Anti-cyclical trading can also be worthwhile: Buy when prices fall, not when they are already at their peak.
Experienced investors stagger their purchases: initial positions after declines of 15 to 20 percent, further positions at 25 to 30 percent minus. If the market crashes by more than 35 percent, there is panic – and that is exactly when the best opportunities open up. Warren Buffett put it in a nutshell: «Be greedy when others are fearful.» For most, an allocation of five to ten percent of total assets is sufficient. The focus should be on Bitcoin, Ethereum and Solana during the crypto rally 2025. In addition, growth segments such as DeFi, AI tokens or Real World Assets are exciting. More than five to ten different coins are not necessary – diversification yes, cluster risk no. It remains important: always keep cash reserves for follow-up purchases.
Also interesting: Crypto economist Raoul Pal sees market before irrational boom
The crypto rally 2025 shows: Blockchain is no longer a niche topic. Billions from the institutional side are changing the market, making it bigger – and riskier. Anyone who wants to be there should not put everything on one card, but invest in a structured way. There are enough opportunities, but the risks remain high. (mck)
