- The U.S. GDP growth rate is projected to slow to 1.7% in 2025.
- Markets anticipate potential impacts on crypto assets and DeFi.
- S&P and Philadelphia Fed reflect cautious economic projections.
The S&P Global Ratings predicts U.S. real GDP growth will decrease to 1.7% in 2025 and 1.6% in 2026, leading to potential softening in the labor market and higher unemployment rates. This slowdown might impact DeFi and crypto markets.
Slower GDP growth could influence crypto markets, as decreased economic expansion typically affects riskier assets like cryptocurrencies. S&P Global Ratings and the Federal Reserve underscore potential economic softness, prompting cautious financial responses.
“We expect weaker growth in the near-term to soften the labor market further in the next 12 months, with the unemployment rate rising to 4.6% by the first half of next year before gradually returning to its long-run average of 4.1% by mid-2027.” – S&P Global Ratings, Principal Economist, S&P Global
S&P Global Ratings forecasts a U.S. GDP growth reduction to 1.7% in 2025. Federal Reserve surveys align closely with this outlook, indicating economic caution. Analysts foresee shifts in crypto market activities tied to macro trends.
Investors face potential crypto market volatility with historical trends showing decreased inflows into riskier assets during economic downturns. S&P highlights expected unemployment rise, indicating broader market ramifications. Crypto assets may experience defensive reallocation to stablecoins and major tokens.
The economic outlook suggests adverse effects on DeFi asset inflows and market liquidity. Federal Reserve’s higher-than-average unemployment predictions reflect challenging financial landscapes. The crypto sector may mirror these broader economic adjustments, impacting speculation and growth.
Historical precedents point to crypto market shifts aligned with economic slowdowns. Analysts observe potential defensive crypto asset repositioning. Industry responses align with S&P’s projections amid rising unemployment and economic constraints, highlighting caution among market participants.
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