Q1 2025 Crypto Crash Explained: Why Prices Fell Despite Bullish News
Published: 2025-05-03
Status:
Available
|
Analyzed
Published: 2025-05-03
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
US Congress is expected to approve a new regulatory framework for stablecoins by July, which will create a clear and compliant path for stablecoins at scale.
"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"
Pending
New stablecoin regulations are expected to lead to big banks, fintech companies, and startups launching and supporting stablecoins, driving mainstream adoption and liquidity from traditional finance into crypto.
"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"
Pending
The US government has an interest in growing stablecoins as they provide a continuous source of demand for US Treasury bonds, which back stablecoins like USDT and USDC.
"the US needs a continuous source of demand for its Treasury bonds which just so happen to be the main assets used to back fully collateralized dollar stable coins like USDT and USDC"
Pending
Circle and Tether are significant holders of US debt, owning more than several countries combined, and are projected to soon own more than Norway.
"circle and Tether collectively own more US debt than Germany Mexico South Africa and Saudi Arabia and appear poised to flip Norway soon too"
Pending
The market capitalization of tokenized real-world assets is approaching $20 billion and is experiencing rapid growth.
"the value of RWAS is now approaching $20 billion and rising very quickly"
Pending
Approximately $4.5 billion of tokenized US Treasuries are currently on-chain, issued by companies like BlackRock, Franklin Templeton, and Onondo Finance.
"around $4.5 billion is US treasuries tokenized onchain by the likes of BlackRock Franklin Templeton and Onondo Finance"
Pending
The global money supply (M2) is expected to expand due to central banks shifting to monetary easing, which is historically positive for risk assets, particularly Bitcoin.
"years of monetary tightening are set to unwind as central banks around the world signal a shift to monetary easing and expansion of the global money supply which is often referred to as M2 now this is historically very good news for risk assets and especially BTC which is famously correlated with M2"
Pending
The rapid increase in M2 suggests that Bitcoin's price may soon rise to catch up.
"m2 is increasing rather quickly suggesting BTC may be about to play catch-up"
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Bitcoin experienced a significant recovery, reaching almost $95,000 in a single monthly candle.
"a steady recovery thereafter turned into a monster monthly candle back up to almost $95,000"
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Due to geopolitical instability, trade wars, and currency devaluation, Bitcoin is increasingly seen by global investors as a hedge, similar to gold, due to its liquidity, scarcity, and independence from external controls.
"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"
Pending
Despite Q1's bullish news, it will take time for these developments to significantly impact the crypto industry and investor portfolios.
"q1 may have been full of bullish announcements and headlines but it will take time before these developments turn into material change for the crypto industry and our backs"
Pending
While large-cap altcoins are expected to recover from Q1's downturn, many smaller altcoins may not due to insufficient demand and liquidity, as Bitcoin's influence may not lift all boats.
"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"
Pending