Crypto Market Ends Q1 2025 With Bitcoin Down 6.49% And Ethereum Down 37.98%
2min read Pav Hundal, lead analyst at Swyftx, has forecasted a weak finish to the first quarter of 2025 for the crypto space, with both Bitcoin and Ethereum experiencing notable price drops. Hundal dismissed the chances of a sharp upward move before March 31, casting doubt on any immediate 2025 crypto rebound before the quarter concludes. Bitcoin's price fell 6.49% in Q1 2025, marking its weakest start since 2020, while Ethereum's price dropped 37.98%, its worst opening quarter since 2018. These downturns contradict historical patterns, as Q1 usually brings substantial gains for these cryptocurrencies.
Ask Aime: What factors led to Bitcoin's 6.49% and Ethereum's 37.98% price drops in Q1 2025?
Hundal attributes this downturn to macroeconomic uncertainty, particularly surrounding proposed tariffs. This situation has kept the crypto space volatile, leading traders to seek clearer economic guidance before acting. Despite slight rebounds in Bitcoin and Ethereum over the last few days, it remains uncertain if this marks stabilization.
Ask Aime: Why is the crypto market experiencing a decline, and how might this affect Bitcoin and Ethereum's future performance?
After hitting the $100,000 level late last year, Bitcoin's price experienced a sharp decline to $78,000, fueling investor doubt. The broader economic picture, affected by tariff proposals, adds significant market pressure. Many participants expected a robust 2025 start after the record highs achieved in 2024. However, unexpected economic news has stalled further positive price movement, preventing sustained upward momentum.
Hundal advises caution regarding Bitcoin’s immediate path. He suggests its future direction might become clearer around mid-April, when fresh economic data releases become available. Despite current challenges, some analysts maintain optimism about BTC’s long-term potential growth. These experts predict it could reach new peak values possibly by mid-year 2025.
Ethereum's price encounters even more serious obstacles, marking its worst Q1 performance in several years. Historically, ETH performed strongly in the first quarter, offering significant returns since 2017. This year presents a stark deviation from that pattern, visible in its current price action. Additionally, the ETH/BTC ratio has dropped considerably, hitting its lowest mark since May 2020, indicating relative weakness.
This lagging performance compared to Bitcoin raises concern about Ethereum’s near-term recovery prospects. Hundal suggests that its difficulties could continue until the broader crypto space finds a more stable overall footing again. Ethereum’s value decline also mirrors trends across the whole crypto sector, as the total market capitalization has consequently decreased since the start of 2025.
The price drops for both BTC and ETH have significantly influenced overall market attitudes. The Crypto Fear & Greed Index reflects this change, now showing a “Neutral” reading. This sentiment shift contrasts with the high optimism seen late last year following initial $100,000 price breaches. Consequently, the market correction early in 2025 prompted greater caution among many active investors.
Analysts hold differing views regarding the long-term outlook for these significant cryptocurrencies. Some experts forecast a substantial Bitcoin price rally to occur before the end of April. Others believe that prevailing economic conditions might postpone any significant market upswing for an extended time. Hundal recognizes this prevailing uncertainty but anticipates improved market clarity within the next few weeks.
As Q1 concludes disappointingly, investors now focus on the second quarter. They anticipate a potential 2025 crypto rebound during the upcoming months. Historical data hints Q2 might bring renewed momentum, yet economic factors and regulatory news remain critical influences. Hundal thinks clearer information on tariffs and economic trends could help restore market confidence relatively soon.
At present, participants in the crypto space maintain a cautious stance while observing ongoing developments. They are actively watching for any definitive signs indicating renewed market stabilization for Bitcoin or Ethereum price might occur soon. With both leading currencies struggling, the coming weeks appear critical for determining whether future market direction shifts decisively. These developments will show whether moving back toward bullish momentum is possible.
