The first quarter of 2025 marked the worst performance for Bitcoin in seven years, losing 12% in value despite strong corporate purchases.
Corporate Entities Accumulate Heavily
In Q1 2025, public companies acquired a total of 91,781 BTC. The highest purchases came from Strategy, acquiring 81,785 BTC worth approximately $8 billion. They now hold 528,185 BTC valued at about $45.64 billion. Additionally, stablecoin issuer Tether bought 8,888 BTC, increasing its reserves to 92,646 BTC valued at $7.96 billion.
Long-term Holders Sold
Despite significant acquisitions, Bitcoin closed Q1 2025 with a negative return. Long-term holders sold 178,000 BTC, adding selling pressure in the market. These sell-offs, along with outflows from Bitcoin exchange-traded funds, exacerbated the situation.
Bitcoin Market at the Start of Q2
As Q2 begins, experts foresee a clash between new corporate demand and selling pressure from existing holders. The market’s reaction to these dynamics will be crucial moving forward.
The first quarter of 2025 served as a challenging period for Bitcoin, reflecting the impact of long-term holder sales against a backdrop of corporate acquisitions. The future of the market remains uncertain.
