Bitcoin crash 2025: Peterffy's warning of chain reaction shocks markets!

On January 20, 2025, Interactive Brokers Chairman Thomas Peterffy expressed concern about the potential risks of Bitcoin and other cryptocurrencies. In his remarks, he pointed to the possibility of a hypothetical Bitcoin crash that could become a major threat to stock markets during 2025. Peterffy called Bitcoin a “dangerous” investment and criticized the cryptocurrencies as a “pipe dream” with no real value.

From Peterffy's perspective, a sudden drop in the Bitcoin price of 30 to 50 percent could trigger a chain reaction that could not only shock the markets, but also lead to bankruptcies and overwhelm clearing houses. Interactive Brokers has already taken action by limiting customers' Bitcoin exposure to a maximum of 10% of their assets. Peterffy also recommends investing only 2-3% of your net assets in Bitcoin. Despite his concerns, he expects that a stock market pullback will not be too dramatic and remains optimistic for the US market over the next four years.

Additional information on the Bitcoin situation

How krypto-magazin.de reports, Peterffy is also observing the increasing interconnectedness between cryptocurrencies and traditional financial institutions, which could pose systemic risks. Interestingly, JP Morgan cites four reasons why Bitcoin could play a dominant role in 2025: unpredictable political developments, an establishment of Bitcoin as a leading player in the crypto fund, new smart contract capabilities and a need for time for the development of altcoin projects.

Additionally, Ledger's Jean-Francois Rochet notes that security-related incidents costing over $3 billion last year have led to a surge in hardware wallet users. This signals a growing interest in self-governance of cryptocurrencies and a waning trust in centralized exchange platforms.