In H1 2025, Bitcoin Propped Up Crypto Markets as Altcoins Tumbled. What Comes Next?

Bitcoin Steadies Crypto Market in H1 2025 as Altcoins Face Sharp Losses

The crypto market finished the first half of 2025 relatively flat overall, but beneath the surface, significant divergences were at play. Bitcoin’s resilience helped keep market sentiment afloat, while altcoins—including major players like Ethereum and Solana—struggled with steep declines.

Despite economic uncertainty driven by trade tensions, recession fears, geopolitical conflicts, and speculation over former President Donald Trump’s return to the White House, the total cryptocurrency market cap edged up a modest 3% in the past six months, reaching $3.27 trillion, according to TradingView data.

However, that headline figure conceals major splits in performance.

Bitcoin (BTC) rose 13% during the first half of the year, continuing to act as a stabilizing anchor for the market. In stark contrast, Ethereum’s ether (ETH) fell 25%, and Solana (SOL) lost nearly 17%.

The damage was even greater in the lower tiers of the market. TradingView’s OTHERS index, which tracks cryptocurrencies outside the top ten by market capitalization, plunged 30%, reflecting widespread risk aversion among investors towards smaller-cap digital assets.

Looking Ahead: Hope for a Stronger H2

Despite the underwhelming start to 2025, analysts are divided on whether crypto can rebound in the second half of the year.

Joel Kruger, market strategist at LMAX Group, remains optimistic. He pointed out that July has historically been one of the strongest months for crypto, delivering an average gain of 7.56% since 2013.

“We’re entering a period that has traditionally produced stronger returns,” Kruger said. “With the second half of the year often delivering outsized gains, the broader outlook remains constructive.”

Kruger also noted that corporations are slowly expanding their crypto strategies beyond bitcoin, with more firms hinting at plans to accumulate assets like ETH.

Coinbase analysts shared similar optimism, predicting a brighter backdrop for crypto markets in the months ahead, fueled by potential Federal Reserve interest rate cuts, improving macroeconomic conditions, and greater regulatory clarity in the U.S. as lawmakers advance legislation on stablecoins and crypto market structure.

However, caution persists among some market observers. Analysts at Bitfinex urged restraint, warning that the third quarter—starting in July—has historically been bitcoin’s weakest, averaging gains of just 6% since 2013.

“This period also tends to feature lower volatility, supporting our view that range-bound trading could persist longer,” Bitfinex analysts wrote in a report on Monday.

With conflicting signals heading into the second half of the year, traders are watching closely to see whether bitcoin can continue carrying the market—or if a broader altcoin recovery might finally begin to take shape.