Bitcoin’s Worst Q1 Since 2018 Sparks Hope for Q2 Rebound Amid Strategic Changes
In 2025, Bitcoin experienced its worst first-quarter performance since 2018, dropping 11.82%. Despite significant positive developments such as the inauguration of the first pro-crypto US president and strategic crypto initiatives, the market faced setbacks, including a notable Bybit hack and meme coin market collapse. Bitwise labeled it as the ’best worst quarter’ due to contrasting positive events like reduced SEC lawsuits and increased stablecoin circulation reaching $218 billion. Matt Hougan, Bitwise CIO, remains optimistic about a potential rebound in Q2, citing global M2 money supply increase, the Trump administration’s favorable cryptocurrency stance, and rising stablecoin adoption. These factors, alongside regulatory relief and strategic reserves, may stimulate demand and bolster cryptocurrency prices, presenting a paradox of challenges and opportunities for market participants.
Neutral
The news presents a mixed outlook for Bitcoin and the broader crypto market. The poor Q1 performance creates a bearish sentiment, yet the potential for regulatory relief, increased global M2 supply, and policy changes under the Trump administration provide bullish indicators for the upcoming quarter. Historical trends suggest increases in money supply and regulatory relaxation often benefit risk assets like cryptocurrencies. Therefore, while short-term reactions might involve caution or consolidation, the long-term implications could indeed see stabilization or growth in demand as the market realigns with favorable conditions.