The first quarter of 2025 was unsuccessful for cryptocurrencies, with sharp declines in the prices of Bitcoin and Ether. This raises new questions about the market's future.
Decline of Bitcoin and Ether
Bitcoin fell by 11.82%, while Ether dropped by 45.41% during the first quarter of 2025. These results starkly contrast with historical performance, where the first quarter was typically strong for both cryptocurrencies.
Causes of Cryptocurrency Decline
The main causes for the decline include macroeconomic uncertainties, U.S. tariff policies, and a correction following the rally at the end of 2024. Political instability and the caution of institutional investors also played a part.
Outlook for Q2
Despite the difficulties, Matt Hougan from Bitwise identifies four potential factors that could lead to a recovery, including monetary expansion, regulatory changes, growth of stablecoins, and investors reassessing their portfolios.
The second quarter of 2025 could be a turning point for cryptocurrencies if investor sentiment shifts and new positive signals emerge in the market.
