Despite the recent major development in the crypto industry, the market has only posted its weakest Q1 performance over the years -but a crypto analyst points to some catalists that can make Q2 more promised.
“It’s frustrating. That’s the best word to describe the previous quarter,” Bitwise Chief Investment Officer Matt Hougan Says In a recent market report, Q1 calling the “best worst quarter in crypto history.”
Bitcoin and Ether got an unusual hit in Q1
Bitcoin (Btc) and ether (Eth), the two largest cryptocurrencies by market capitalization, saw price declines of 11.82% and 45.41%, respectively, more than Q1 2025 – a quarter with history who saw strong results for both possessions. Since 2013, Q1 has become the second strongest quarter of Bitcoin on average (51.2%) and history is the best for Ether (77.4%), According to in coinglass data.
Hougan pointed out to some major catalysts that would help crypto deliver more to Q2.
He noted the rising global currency supply, which “after years of restriction, central banks around the world have signed a move towards the financial expansion and expansion of the M2.”
“Historically, these conditions are desirable for risk -owners, especially for digital possessions,” Hougs said. Echoing a similar emotion, pav hundal, the lead analyst to Australian Crypto Exchange Swyftx.
Recently, on April 14th, Analyst Colin said Crypto“The Global M2 remained in an ATH for 3 days after a while.” Bitcoin moves in the direction of global M2 83% of the time, economist Lyn Alden write In a research report in September.
Hougan also said that the “clean sweep of pro-regulations” in the US could be another bullish factor for the crypto market. “This is the long tail of regulatory clarity without talking, and it is just starting out,” Hougan said.
Increasing stablecoin assets under management can also be a positive indicator that more upside down will come this year in the crypto market. Hougan said in the first quarter, Stablecoin’s assets under management advanced to “a full time high over $ 218 million.”
“The growing stablecoin adoption will benefit from adjacent sectors, including the DEFI and other crypto applications,” he said.
The firm also said that the “geopolitical chaos” seen in the global economy during the Q1 2025, mainly after the inauguration of president Donald Trump through his tariffs, “is pushing global investors to review their portfolios.”
The days only came after Hougan reiterated his prediction that Bitcoin could ride approximately 138% from the current price of $ 84,080 by the end of the year.
“In December, Bitwise predicted that Bitcoin would end the year at $ 200,000. I still think about playing,” Said Hougan.
In the meantime, crypto Coinbase’s Exchange Coinbase recently said“When the emotion is finally reset, this is likely to happen quickly, and we will stay in the second half of 2025.”
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This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
