Crypto Market Shaken as Bitcoin Posts Its Most Disappointing Q1 in 10 Years

Bitcoin’s bullish streak hit a wall in Q1 2025, with the world’s largest cryptocurrency falling 11.7% — its steepest first-quarter decline since 2015. The pullback has sparked debate over whether the current cycle is winding down or merely facing a macro reset.

The drop places this year’s Q1 performance among the weakest in over a decade, according to NYDIG Research. The last comparable start was in 2015, when the market was reeling from the collapse of Mt. Gox and a multiyear correction that followed the 2013 rally. Back then, BTC treaded water before beginning a fresh uptrend in 2016.

Bitcoin’s early-year stumbles haven’t always spelled doom. In 2020, Q1 losses of around 9% gave way to an explosive rally that saw the asset triple by year-end. However, in other post-peak years like 2014, 2018, and 2022, similar Q1 slumps preceded broader annual losses.

This time, optimism surged late last year after Donald Trump’s return to the White House, thanks to his pro-crypto campaign. Under his leadership, regulatory tensions have eased — with the SEC pulling back from key lawsuits — creating a tailwind for digital assets.

But the momentum didn’t last long. Trump’s unexpected rollout of wide-ranging reciprocal tariffs last week triggered a historic $5.4 trillion wipeout in U.S. equities, dragging the Nasdaq into bear market territory. Bitcoin held up better than most, remaining above $80,000, but markets remain on edge.

Still, the picture isn’t entirely bleak. BTC’s resilience relative to tech stocks has bolstered its case as a potential safe-haven asset — what some are now calling a “U.S. isolation hedge.” Whether that narrative holds will depend on how the crypto market weathers the coming storm.

If history is any guide, weak Q1s can either mark the start of something worse — or be quickly forgotten. The next quarter may reveal which way the pendulum swings.

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