NVIDIA

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<p>If you’re involved in crypto, you’re probably familiar with its unpredictability. One day, prices soar, and the next, they drop. According to <a href="https://www.bloomberg.com/news/videos/2024-12-06/bloomberg-the-china-show-12-06-2024" target="_blank" rel="noreferrer noopener nofollow">Gareth Nicholson</a>, Chief Investment Officer at Nomura, 2025 could bring some major disruptions to the global financial markets.</p>   
<p>In his comprehensive 100-page report for the coming year, Nicholson identifies several "Gray Swan Events"—rare occurrences that are unlikely but could have a huge impact if they happen. Let’s take a look at these events and how they could affect the <a href="https://coinpedia.org/news/crypto-price-today-dec-06th-2024-bitcoin-drops-amid-extreme-greed/" target="_blank" rel="noreferrer noopener">crypto market</a> next year.</p>   
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<h2 class="wp-block-heading" id="h-what-are-gray-swan-events">What Are "Gray Swan Events"?</h2>   
<p>"Gray Swan Events" are unexpected incidents that have a low chance of happening, but if they do, their effects would be massive. Nicholson highlights several of these potential events in his 2025 outlook. Here’s a breakdown of what could be in store for the crypto market.</p>   
<h3 class="wp-block-heading" id="h-1-nvidia-crash-trouble-for-crypto-mining">1. NVIDIA Crash: Trouble for Crypto Mining</h3>   
<p>NVIDIA is more than just a tech giant—it’s at the core of crypto mining. If its value drops sharply, miners might struggle to get the hardware they need. This could slow down <a href="https://coinpedia.org/beginners-guide/what-is-blockchain/" target="_blank" rel="noreferrer noopener">blockchain networks</a> and leave smaller cryptocurrencies exposed to attacks. If miners can’t access affordable tech, it could also lower confidence in the entire crypto ecosystem. A crash like this could lead to panic selling, and as a result, Bitcoin and altcoins may tumble.</p>   
<h3 class="wp-block-heading" id="h-2-carry-trade-unwind-liquidity-fades">2. Carry Trade Unwind: Liquidity Fades</h3>   
<p>If the carry trade unwinds, investors may start pulling their funds from the crypto market, causing a liquidity shortage. This could lead to panic selling, driving prices down. While some might still see Bitcoin as a safe haven during such times, others may view it as a high-risk asset and pull back from investments. </p>   
<p>This would create a volatile situation, with Bitcoin’s future uncertain, depending on how it’s viewed—either as “digital gold” or a speculative investment.</p>   
<h3 class="wp-block-heading" id="h-3-rising-treasury-yields-pressure-on-bitcoin">3. Rising Treasury Yields: Pressure on Bitcoin</h3>   
<p>If U.S. Treasury yields rise above 6%, safer investments might seem more attractive, reducing demand for higher-risk assets like Bitcoin. This shift could make it harder for crypto to maintain its appeal. However, if higher yields lead to a weaker dollar, Bitcoin might gain traction as a hedge against inflation. The way people see Bitcoin—either as a store of value or a risky investment—will determine its future in this scenario.</p>   
<h3 class="wp-block-heading" id="h-4-us-growth-shock-what-happens-if-the-economy-slows-down">4. US Growth Shock: What Happens If the Economy Slows Down?</h3>   
<p>If the U.S. economy unexpectedly slows down in 2025, it could trigger problems for global markets. With less capital available for investment, markets would likely experience downturns, and the <a href="https://coinpedia.org/news/crypto-market-prediction-2025-bitcoin-and-altcoins-ready-for-dramatic-bull-run/" target="_blank" rel="noreferrer noopener">crypto market</a> could take an even harder hit. Bitcoin and altcoins could suffer significant price drops as investors pull back from risky assets in favor of safer options.</p>   [post_titles_links postid="389988"]   
<h3 class="wp-block-heading" id="h-5-geopolitical-tensions-can-bitcoin-handle-it">5. Geopolitical Tensions: Can Bitcoin Handle It?</h3>   
<p>Geopolitical conflicts often cause market instability, driving investors toward safer assets like gold. This trend could hurt crypto, but Bitcoin might stand out in such times. Due to its <a href="https://coinpedia.org/beginners-guide/what-is-bitcoin/" target="_blank" rel="noreferrer noopener">decentralized nature</a>, Bitcoin could appeal to people in regions facing financial restrictions, offering a way to preserve wealth. Although geopolitical tensions may lead to short-term drops in the market, Bitcoin could benefit in the long run as people look for alternatives to traditional finance.</p>   
<h3 class="wp-block-heading" id="h-6-china-stimulus-falls-short">6. China Stimulus Falls Short</h3>   
<p>China’s economic stimulus plans are always closely watched, and if they fall short of expectations, it could dampen investor sentiment. A lackluster performance could lead to lower confidence in global markets, including the crypto space. Instead of driving <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin’s price</a> up, this scenario could result in increased volatility and investor hesitation, putting downward pressure on prices.</p>   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]   
<h2 class="wp-block-heading" id="h-why-does-it-matter">Why Does It Matter?</h2>   
<p>Bitcoin and other cryptocurrencies are now part of the larger financial ecosystem. Events like an NVIDIA crash or rising Treasury yields could bring both challenges and new opportunities.</p>   
<p><strong>Crypto’s future will depend on how well it adapts to these changes. By preparing yourself, you can make the most of whatever happens in the coming year.</strong></p>

Top 6 Gray Swan Events Which Could Crash Crypto in 2025

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