Bitcoin nears $85K before tariff implementation; DOGE, XRP, and ADA outperform major cryptos.​

Bitcoin Faces a Tough Quarter, but Long-Term Bullish Sentiment Persists Amid Tariff Concerns

Bitcoin ended a rocky first quarter of 2025 with an 11% loss, marking the worst quarterly performance since Q2 of 2022. The downturn came as traders brace for the impact of U.S. tariffs set to go into effect on April 2, further fueling uncertainty across financial markets.

On Tuesday, during European trading hours, Bitcoin (BTC) was edging closer to $85,000 as the market awaited the repercussions of the upcoming tariffs. Meanwhile, Dogecoin (DOGE) and Cardano (ADA) led the market with impressive gains of over 7%, while Ethereum (ETH), XRP, Solana (SOL), and BNB Chain’s BNB all posted moderate increases of nearly 5%.

Despite these modest recoveries, the broader cryptocurrency market saw a 3% decline in total market capitalization, with CoinGecko data showing a mixed performance from the major coins. The CoinDesk 20 index experienced a slight 3% bounce over the past 24 hours, reflecting a shift from riskier assets to safer havens like gold, which hit new highs on Tuesday amid increasing investor caution.

With the U.S. tariffs looming, alongside a slew of disappointing U.S. economic and labor reports, the mood across the crypto market has been notably bearish. SignalPlus’s Augustine Fan pointed to a lack of fresh catalysts, such as big institutional investments or major ETF inflows, which has left the market stuck in a low-conviction phase as the first quarter wrapped up. This uncertainty contributed to Bitcoin’s 11% drop, which mirrored a similarly challenging quarter for the S&P 500.

Data from the CME futures market reveals that speculative positions on Bitcoin are currently the most bearish they’ve been in years, a stark contrast to the bullish enthusiasm at the beginning of the year. Fan noted that while this bearish positioning isn’t a direct trading signal, it does suggest that if the market turns bullish, the rebound could be sharp due to the current high levels of short positioning.

Despite the prevailing bearish sentiment, long-term Bitcoin holders appear to be holding firm. Glassnode data indicates that holders with positions ranging from 3 to 6 months are now sitting on profits, even as Bitcoin’s price hovers near lows not seen since June 2021. Additionally, large institutional investors who entered the market in recent months, known as “whales,” are choosing to hold onto their positions, providing a layer of stability to Bitcoin’s price floor.

Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund and Research, described the current market sentiment as “risk-off,” but expressed optimism for the long-term future of Bitcoin. He noted that while the tariffs and economic data present a short-term challenge, the ongoing institutional adoption of cryptocurrencies and the favorable regulatory policies being developed around the world remain strong drivers for long-term growth.

In summary, while Bitcoin is grappling with short-term headwinds due to the looming tariffs and a broader risk-off sentiment, the longer-term outlook remains bullish. Institutional interest, ongoing regulatory support, and the resilience of long-term holders offer a strong foundation for Bitcoin’s future growth, despite the current market challenges.

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