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Bitcoin and Ethereum both declined in Q1 2025, although it has traditionally been the second-best quarter for Bitcoin and the best for Ether.

Even with recent significant advancements in the crypto industry, the market has just released its weakest Q1 achievement in years, but a crypto expert highlights a few factors that could make Q2 more hopeful. 

“Frustrating. That’s the best way to describe the last quarter,” said Matt Hougan, chief investment officer of Bitwise, in a recent market report. He called Q1 the “best worst quarter in crypto’s history.”

Unusual Q1 Dip Hits Bitcoin and Ether

Bitcoin and Eth, the two biggest cryptocurrencies based on market value, experienced a price drop of 11.82% and 45.41%, in the same order, over Q1 2025, a quarter that has traditionally observed strong results for the two assets. According to CoinGlass data, since 2013, Q1 has been Bitcoin’s second most powerful quarter on average (51.2%) and traditionally the best for Ether (77.4%).

Hougan mentioned a few important reasons that could help crypto do better in Q2.

He observed the upward trend in Worldwide currency circulation, which, following years of strict policies and worldwide central banks, signals a move toward monetary relaxation and M2 expansion. 

In the past, these conditions have been good for risky investments, especially digital assets, Hougan said. Similarly, Pav Hundal, the lead analyst at the Australian crypto exchange Swyftx, told Cointelegraph in February that “during normal times, global measures to loosen policies are generally a good sign for crypto.”

Just recently, on April 14, expert Colin Talks Crypto said, “Global M2 has stayed the same at an ATH for 3 days in a sequence.” Bitcoin shifts in the direction of global M2 83% of the time, financial expert Alden wrote in a September analysis report. 

Hougan also mentioned that the “clear support for regulations” in the US could be another positive factor for the crypto market. “This is the long-term impact of clearer regulations that no one is talking about, and it’s just beginning,” Hougan said.

The surge in stablecoin assets under supervision may also be an uplifting indicator that additional growth is expected this year in the crypto market. Hougan said that in the first quarter, the number of stablecoin assets being managed grew to a record high of more than $218 million.

Growing stablecoin adoption will support nearby industries, including DeFi and other crypto platforms,” he said.

The firm also mentioned that the “geopolitical chaos” in the global economy during Q1 2025, mainly after US President Donald Trump’s inauguration and his tariffs, “is causing global investors to rethink their investments.”

It happened shortly after Hougan recently repeated his prediction that Bitcoin may rise around 138% from its present price of $84,080 by the closing of the year. 

In December, Bitwise estimated that Bitcoin would close the year at $200,000. I still believe that’s a possibility,” Hougan said.

On the other hand, the crypto exchange Coinbase just stated, “When the mood finally changes, it will probably happen fast, and we remain positive about the second half of 2025.”

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