Crypto Experts Warn of Market Bubble and Predict 99% Token Collapse by 2025.

Kraken and DCG warn of a potential crypto bubble, predicting that 99% of tokens could collapse by September 2025. The warning highlights the volatility of the crypto market, urging investors to consider risks amid soaring Bitcoin prices and speculative altcoin investments. Experts suggest that similar trends have occurred historically, with market bubbles leading to corrections.

September 12, 2025 — In a stark warning to the crypto community, Kraken and Digital Currency Group (DCG) have predicted that 99% of tokens could collapse by September 2025. The cautionary note comes amidst soaring Bitcoin prices and speculative altcoin investments, highlighting the volatile nature of the crypto market.

Kraken, one of the world's largest crypto exchanges, and DCG, a leading digital asset investment firm, have urged investors to consider the risks. They cited historical market bubbles that have led to significant corrections, advising caution in the current bullish environment.

The warning echoes concerns raised by analysts about the potential for a crypto bubble. In a recent report, Coinbase (NASDAQ: COIN) saw its shares surge, reaching multi-year highs, driven by optimism in the digital asset sector and renewed investor appetite for stablecoins Wall Street Calls Coinbase the ‘Amazon of Crypto’ as Shares Skyrocket^[1]. Meanwhile, Circle (NYSE: CRCL), in which Coinbase holds a minority stake, has also seen its shares soar due to strong demand for its USDC token Wall Street Calls Coinbase the ‘Amazon of Crypto’ as Shares Skyrocket^[1].

However, not all analysts are bearish. A projection by asset management firm Bitwise suggested that Bitcoin could reach approximately US$1.3 million (AU$2 million) by 2035, a conservative forecast according to Pav Hundal of Swyftx Analyst Calls Bitcoin Price Prediction Conservative for 2035^[2]. This prediction underscores the differing views on Bitcoin's long-term viability and market behavior.

The growing overlap between blockchain-native projects and equity markets is evident, with firms like HYLQ Strategy Corp positioning themselves within the digital asset economy. HYLQ, listed on the Canadian Securities Exchange, has staked its strategy on the Hyperliquid platform, which operates on a custom Layer-1 blockchain capable of processing up to 200,000 transactions per second Wall Street Calls Coinbase the ‘Amazon of Crypto’ as Shares Skyrocket^[1].

As the crypto market continues to evolve, investors are advised to remain vigilant. While the potential for significant growth is present, the risks associated with volatility and market bubbles cannot be overlooked. The warning from Kraken and DCG serves as a reminder that caution is key in navigating the complex and dynamic world of digital finance.