Bitcoin's value has dropped from $109K to $82K over the last three months. This decline could be linked to inflation data or deeper economic issues.
Bitcoin’s coldest Q1 in 7 years
Three months ago, the crypto market was booming with Bitcoin crossing the $109,000 mark. However, by the end of Q1 2025, Bitcoin saw a 13% decline, trading around $82,000, marking the weakest Q1 in seven years. The last similar decline was in 2018, with a nearly 50% drop. Economic factors like persistent inflation and geopolitical risks have played their roles.
Decoding the crypto slide
The crypto market faced a strong blow on March 28 when the February PCE index signaled a 2.8% inflation rate, surpassing expectations. The market tension intensified due to President Trump's tariffs on imports from several countries. The ensuing global tension impacted markets, including cryptocurrencies. The resulting fear and uncertainty led to Bitcoin and other altcoins losing value.
What consumer confidence says about crypto’s next moves
Consumer confidence has been declining, dropping to 92.9, the lowest since 2013. This fall in confidence translates to market pessimism. Respondents are increasingly skeptical about stock market growth and job availability, leading investors to shift to safer assets, impacting the cryptocurrency market, which is often the first to feel the strain.
Q1 2025 presented challenges for cryptocurrencies. Markets faced increased pressure from inflation and geopolitical risks. The crypto market may encounter further difficulties unless economic conditions improve.
