- Bitcoin and Ethereum face significant Q1 losses, marking their worst performances in years.
- U.S. trade tariffs contribute to uncertainty, impacting Bitcoin and Ethereum’s Q1 results.
- Bitcoin’s Q1 drop is 6.69%, while Ethereum suffered a 38.37% decline in three months.
Bitcoin (BTC) and Ethereum (ETH) are projected to finish Q1 2025 with substantial losses despite initial predictions of market strength at the beginning of the year. Historically, cryptocurrencies demonstrate strong Q1 returns but show declining trends before the quarter’s end. Market participants have started to doubt future price performance and want to know if President Donald Trump’s planned trade barriers will impact market movements.
Bitcoin and Ethereum Struggling in Q1
Bitcoin’s performance has been disappointing, with a 6.69% drop, marking its worst Q1 result in recent years. The price of Bitcoin recorded a 68.68% increase throughout Q1 2024. Since 2013, Bitcoin has generated an average quarterly return of 51.61% throughout the first quarter. This current decline indicates a widespread market volatility pattern that influences the sector. The first quarter of Bitcoin delivered a strong performance in earlier years, as demonstrated by 71.77% returns in 2023 and 103.17% returns in 2021. The 2025 downturn in Bitcoin value stems mostly from external economic influences, including global trade policies and increasing inflation rates.
Source; Coinglass
Ethereum is also facing challenges, posting its worst first-quarter performance in Q1 2025 with an 8.37% decline. However, this loss is relatively smaller compared to the 59.66% drop recorded in Q1 2024. The average Q1 return of about 78.18 % of Ethereum is under pressure as external factors impact the currency. Although the asset made significant gains in the first quarter, it failed to sustain the bull run witnessed this year.
Since 2017, Ethereum’s average return in Q1 has historically been strong at 78.18%, its recent performance has been eccentric. The decline in Ethereum’s price is linked to the same macroeconomic issues affecting Bitcoin, including trade policy uncertainties and inflationary pressures. These factors have left investors cautious, contributing to the downturn in Ethereum’s value.
Related: Ethereum Retires Holesky and Shifts to Hoodi Testnet
Will Trump’s Tariff Plans Shape the Next Move?
Another key factor influencing the market is the potential impact of Trump’s tariff plans. The President has previously signaled intentions to raise tariffs, particularly targeting economic competitors such as China, Mexico, and Canada. These policies could drive inflation and slow economic growth, creating a more challenging environment for risk assets like Bitcoin and Ethereum.
Imposed tariffs would reduce global demand for high-risk financial assets, causing short-term Bitcoin market price declines. Experts agree that Bitcoin might function as a hedge against economic instability. A weakening global economy from tariff-induced inflation may highlight Bitcoin’s value as a store of value, thus generating a possible market recovery in the months ahead.
As the first quarter concludes, the second quarter of 2025 becomes the main focus. The future of Bitcoin and Ethereum remains uncertain because of the current macroeconomic challenges ahead. An enhancement in economic performance combined with stabilized global trade policies can boost both cryptocurrencies during the second quarter of 2025.
