If you only looked at the graphics, you might think that the first quarter of 2025 was a total disaster for the crypto. Ethereum plunged 45%. Total market capitalization has lost 650 billion brutal dollars. In April, the entire cryptographic space fell 30% compared to its top of all time in January of 3.9 billions of dollars. And yet – according to the asset manager THE The most important district in the recent history of cryptography.
In a report published on April 16, Bitwise called it “the best worst quarter of all time”. And honestly, they may be right.
The neighborhood that had everything – for better or for worse
It started with fireworks: the first American president Pro-Crypto took office, the SEC finally released on his meat and the Trump administration launched a strategic bitcoin reserve. Years of dreams materialized in a few weeks.
However, despite these macro wins, the market has landed.
The high capitalization crypto index of 10 Bitwise dropped by 18%. Cryptographic actions collapsed by 27%. Ethereum? A 45% drop of 45%. Even Bitcoin could not escape pain. All of this happened while the feeling of investors went from hope to exhausted, despite all bullish developments.
And then came the “ugly”: the parbit underwent a massive hack of $ 1.5 billion. The enthusiasm of the play even officially imploded, leaving behind a trace of zero value token and broken dreams.
But below the surface, something was built
Matt Hougan, Bitwise investment director, says that the most intelligent investors are not looking for price graphics – they chase signals under chaos.
And they find a lot.
The circulation of Stablescoin exceeded $ 218 billion, a jump of 13.5% in the quarter. Transaction volumes have also increased by 30%, which shows that real use does not slow down. The real tokenized assets – often considered as a barometer for institutional interest – have embarked 37% to reach a new summit of all time.
Most importantly, the volume of regulated Bitcoin and the open interest is reaching registration levels. Translation: The big players do not leave the game – they prepare for the next phase.
What comes then could return the script
Bitwise highlighted three macro-tendencies that could reverse the current gloom from the market to the second quarter:
- Monetary relief – Central banks are quietly moving towards more loose monetary policies. Historically, this is excellent news for risky assets like crypto.
- Regulatory relief – The United States laying the basics of the regulation of stablescoin and definition, a safer environment emerges for innovation.
- Global economic pressure – Trade wars, capital controls and the devaluation of money oblige global investors to rethink where they park their wealth.
In this climate, Bitcoin begins to look less like a bet and more to digital gold: rare, liquid and immunized against the manipulation of the government.
Final reflections
The first quarter of 2025 could become the most misunderstood district in the history of cryptography. The prices collapsed, yes – but below, fundamental changes have taken place. Institutional interest has increased. The adoption of the real world has accelerated. And the regulatory tides finally made the favor of crypto.
Smart money does not look at what has been lost. They look at what is being built.
And if history is a guide, which comes then may well that the chaos is worth it.
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