Bitcoin ended Q1 2025 with a 12.7% decline, marking its worst performance in seven years amid macroeconomic risks and new trade tariffs.
Bitcoin's Q1 2025 Decline
According to CoinGlass, Bitcoin's price fell around 13% in Q1 2025, closing just over $81,000. This contrasts sharply with a 72% surge in Q1 2023 and 69% in 2024. The decline comes amidst a 30% drop from the January highs and high leverage against expectations of lower rates and significant investments.
Impact of Tariffs and Inflation
On March 28, the U.S. core Personal Consumption Expenditures index hit 2.8% year-on-year, exceeding forecasts. President Trump's administration introduced new trade tariffs starting April 2, targeting imports from China and other countries. This uncertainty erased over $1 trillion in market cap from tech sectors.
Market Outlook for April 2025
Investors are now waiting for U.S. jobs data and comments from Fed Chair Jerome Powell on April 4. Coinbase metrics show reduced panic selling, though the market remains pressured by macro factors. April may be a turning point for cryptocurrencies if economic conditions improve.
The cryptocurrency market remains influenced by external economic factors. Upcoming jobs data and Fed statements could significantly impact market dynamics in April 2025.
