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The COINDECKO COI1 CRYPTOGRAPHY INDUSTRY report emphasizes that the total market capitalization of cryptography fell 18.6% in the first quarter, annihilating $ 633.5 billion after dominating on January 18, a few days before the inauguration of President Donald Trump. This drop was accompanied by a drop in investor activity, the average daily daily trading volumes plunging 27.3% quarters. During the same period, Bitcoin (BTC) dropped by 11.8%, but its domination increased, and it was outperformed by gold and the American treasury bills.
On Wednesday, the “ report of the cryptographic industry of Q1 ” in Coingecko, underlined the overall performance of the cryptographic market in the first quarter. The report explains that the total market capitalization of cryptography fell by 18.6%, annihilating $ 633.5 billion in the cryptography market in the first quarter. The market found a local summit of $ 3.8 billion on January 18, two days before the inauguration of Donald Trump, and at the end of the quarter, it amounted to 2.8 billions of dollars. In addition, this drop was accompanied by a drop in investor activity, the average daily trading volumes plunging 27.3% quarters, as shown in the graph below.
Q1 Total capitalization capitalization and total commercial volume. Source: Coingecko
The report also explains that the BTC continued to climb in dominance, increasing by 4.6% in the first quarter and ending the quarter with a dominance of 59.1%, the levels not seen since the first quarter of 2021. Cryptographic investors have moved to stable econes to find the stability of the decrease in the market. At the same time, the USDC Stablecoin has regained its seventh place, replacing Dogecoin (Doge).
Looking at the bottom of Ethereum (ETH), the report continued that the ETH fell by 3.9%, its domination reaching 7.9%, the lowest level since the end of 2019. Other Altcoins fell from smaller magnitude, lowering 3.5% to encompass 15.7% of the market. Only Ripple (XRP) and Binance Coin (BNB) have retained their market share among the majors.
Cryptographic dominance table Q1. Source: Coingecko
The Bitcoin Prize rallied at the start of this year and reached a new $ 106,182 summit on January 22, two days after Trump’s inauguration. This marked a top of the year (YTD) for BTC because it tends to finish the first quarter with a drop from -11.8% to $ 82,514.
In the midst of this quarter of agitation and uncertainty because of American tariff concerns, geopolitical instability, reductions in interest rate of the expected federal reserve (Fed) and the high demand from the Central Bank fueled a rally in precious metal and gold positioned as an asset of security, as reported in the previous article.
Coindecko’s report explains that gold joined 18% in the first quarter. In addition to BTC, risk assets such as NASDAQ and S&P 500 decreased, down -10.3% and -4.4%, respectively, as shown in the graph below.
Q1 Bitcoin vs Major Assets Tableau. Source: Coingecko
The report continued: “The DXY, generally inversely correlated with risk assets, fell by -4.6%, potentially due to uncertainty on American prices. The JPY (+ 5.2%) and the EUR (+ 4.5%) were strengthened compared to the USD, the first was at least partially due to an additional Yen Transport trade as the BOJ increased interest rates in January. ”
In An Exclusive Interview, Zhong Yang Chan, Head of Research at Coingecko, Told Fxstreet that “The Crypto Market … is not immune to Broader Macroeconomic Trends,” and Emphasized that bit Bitcoin has shown notable resilience compared to altcoins, even Amid andf Outflows and tighting Monetary Policy and Said that “Compared to Other Risk-On Assets, we have actually seen bitcoin weather the recent uncertainty loan with, altcoins have suffered badly in general.
Chan added: “It is clear that the prospects for all the financial markets, and not only the crypto, remain troubled until there is more clarity and stability under macroeconomic conditions” and “if Bitcoin is able to continue to remain resilient during this period, it will be very firm for the rebound that will eventually come.”