Q1 2025 Crypto Crash Explained: Why Prices Fell Despite Bullish News

"m2 is increasing rather quickly suggesting BTC may be about to play catch-up with any luck this has already started because the market looks like it's at a turning point with BTC decisively breaking out of its Q1 downtrend after tumbling to $74,500 in the first week of April price put in a double bottom as Trump paused his Liberation Day tariffs a steady recovery thereafter turned into a monster monthly candle back up to almost $95,000 after Walmart and Target told Trump that their shelves would soon be empty if he didn't back down from his China tariffs and he agreed in principle to reduce them substantially"

"Bitwise expects to give BTC a boost this year and that is geopolitical chaos the report's authors described this as follows quote geopolitical chaos trade wars capital controls and fiat devaluations are pushing global investors to reassess their portfolios in this environment bitcoin like gold is being increasingly viewed as a potential hedge liquid scarce and most importantly independent of tariffs capital controls and currency manipulation falling faith in institutions opens the door for Bitcoin as a global asset"

"if gold continues to outperform BTC over the next three quarters we might have something to be worried about but until then we'll remember Q1 as a retracement in a still intact high timeframe BTC uptrend"

"bitcoin expects the US Congress to approve a new regulatory framework for stable coins by this July creating a clear and compliant path for stable coins at scale if this does indeed happen there should be nothing stopping big banks fintech companies and startups launching and supporting stable coins this would be a great leap forward for mainstream stable coin adoption and a new source of liquidity flowing from tradi into crypto assets"

"circle and Tether collectively own more US debt than Germany Mexico South Africa and Saudi Arabia and appear poised to flip Norway soon too"

"we've no reason to think that this trend will slow down anytime soon"

"The road ahead meanwhile is paved with bullish catalysts from global liquidity increasing to favorable US stable coin legislation to what Bitwise calls quote the long tale of regulatory clarity now these are all unambiguously bullish developments for crypto but it will take more than a single quarter to see the material effect they'll have on the markets and the crypto industry"

"where there is hope for Bitcoin there's hope for altcoins but just remember that we're not in 2021 anymore buying and selling the right altcoins at the right time has never been more difficult although large caps should mostly recover from the Q1 carnage many smaller altcoins may not because there isn't enough demand or liquidity for Bitcoin's rising tide to lift all boats anymore"