Q1 2025 marked significant changes in the cryptocurrency market, including volatility and declining trading volumes, according to the report by analytics firm Kaiko.
Overall Market Condition
Following Donald Trump's return to the White House, the cryptocurrency market initially showed optimism, with Bitcoin reaching all-time highs in January. However, Trump's rapid tariff impositions created new uncertainties.
Volatility of Bitcoin and Altcoins
Kaiko's report indicates that trading volumes for Bitcoin, Ethereum, and leading altcoins fell by 30% compared to November 2024 levels. Bitcoin lost 12% over the quarter, despite maintaining a dominant market position.
Forecasts for Q2
Analysts believe the second quarter could bring new growth opportunities, considering the increase in crypto-ETF applications and the growth of the stablecoin ecosystem, potentially supporting broader market rises.
As institutional interest grows and regulatory changes loom, Q2 2025 may present a more positive outlook for the cryptocurrency market.
