Even though crypto has a history of having strong first quarters, Q1 2025 disappointed investors. Bitcoin fell by 11.82 percent and Ether by 45.4 percent, one of the worst first quarters in years. Recent data show that Q1 has been the second-best quarter for Bitcoin (51.2%) and the best quarter for Ether (77.4%). It was the “best worst quarter in crypto’s history,” according to Bitwise CIO Matt Hougan. But even though the first quarter wasn’t great, experts hope the second quarter will be much better. Here are four essential things that could make things better.
- A global shift toward monetary easing
A rise in the world’s money supply could be one of the best things for crypto. After years of making policy stricter, many central banks indicate they will loosen monetary policy and make M2 bigger. Risk-on investments like Bitcoin and Ether have done very well in these kinds of situations in the past. Colin Talks Crypto, an analyst, said that “global M2 stayed at an all-time high for three days in a row in April.” Lyn Alden, an economist, said that Bitcoin “follows global M2 trends 83% of the time.”
- U.S. Pro-Regulatory Clarity
The crypto market has been in the dark for a long time because of regulatory confusion. Hougan, on the other hand, thinks there will be a “clean sweep of pro-regulations” across the U.S., which will finally make things clear for regulators.
- Stablecoin Growth Indicates Market Strength
Even though stablecoins aren’t getting much attention, their growth is a strong sign of market health. Stablecoin assets under management hit a record high of $218 million in Q1, which shows that there is more money available.
- “Geopolitical Shocks Cause Portfolio Shifts”
Uncertainty worldwide, primarily since President Trump’s return to office and the imposition of new taxes, has caused problems in traditional markets. Because of this “geopolitical chaos,” investors are re-evaluating and diversifying their investments.
Conclusion
Even though Q1 was rough, it’s clear that the conditions are right for crypto to make a comeback. Changes in monetary policy, growth in regulations, growing use of stablecoins, and changes in geopolitics all point to Q2 being an up-and-coming quarter.
