Nobody had expected the market to suffer so badly. At the beginning of the year, things were finally looking up for the crypto industry. A newly elected president came into power, seeking to make cryptocurrency a more accessible landscape. Then came the trade war and everything delved into chaos.
To everyone’s surprise, the bullish market soon turned on its heels, and the market shifted to bearish in a matter of a few hours. BTC was hovering well above the $100,000 mark before the market took a hit. And now, the token is going for $84,574 with a 0.43% downtrend. This is also true for ETH. BTC and ETH are usually top performers in the first quarter. However, 2025 was different.
Q1 Disaster
This sharp downturn has sparked debate about a possible rebound in Q2 of the year. BTC and ETH, two of the biggest assets, fell by 11.82% and 45.41% respectively. This decline stands in stark contrast to historical data. Since 2013, it has been noticed that the first quarter represents growth. However, this year the dynamics changed.
Bitwise’s Chief Investment Officer, Matt Houghan, said that it is “Frustrating. That’s the word that best describes the past quarter.“ In fact, Matt is not the only frustrated person. Many investors have expressed concerns about the tumultuous times across the board.
Even though Houghan is frustrated with the quarter’s performance, he believes that there is a rebound coming. Houghan suggested that once the dust settles and crypto-friendly regulations come in full swing, things will be much better.
On the other hand, we are seeing some positive movement in the stablecoin sector. Which means that the market is on its way to priming itself for a breakout. Therefore, the next few months can prove crucial for investors.
