In 2025, cryptocurrencies, including Bitcoin, struggled with weak sentiment and choppy trading, potentially leading to the worst yearly performance since 2022. Uncertain regulatory environments in the U.S. and abroad, along with a lack of expected friendliness towards digital assets, have contributed to this stallout.

Two crypto-related companies facing challenges in the current environment are SharpLink Gaming and TeraWulf. SharpLink has significant exposure to Ethereum and could face compliance costs if ETH tokens are deemed securities. The stock is overvalued and facing technical headwinds, while TeraWulf’s rapid expansion through debt funding poses risks as liabilities grow closer to assets.

Read more at Nasdaq: 2 Stocks to Avoid as Crypto Momentum Wanes