The Best Worst Quarter Crypto’s Ever Had (And You Won’t Believe What Happened Next!)

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Well, well, well. In the latest crypto market review, released on April 16, Bitwise, that noble institution of asset management, calls Q1 2025 “the best worst quarter in crypto’s history.” Oh, how sweet the irony! The chief investment officer, Matt Hougan, admitted the quarter was “frustrating.” That’s one way to put it, isn’t it?

Now, let’s talk about the good stuff, because it wasn’t all doom and gloom. For starters, the first pro-crypto US president took office. Yes, you read that right! The US also set up a strategic Bitcoin reserve, the SEC decided it had better things to do than sue crypto companies (for now, anyway), and the Biden-era crypto war? Well, that’s over, folks! The dream was real. Crypto enthusiasts have been fantasizing about this for years, and at long last, their dreams came true—sort of.

“Crypto dreamed of these developments for years, and they finally all happened.”

The Good, The Bad, and The Ugly

Now, if you think all this progress reflected in the markets, you’d be wrong. The Bitwise 10 Large Cap Crypto Index dropped 18%. Ouch. Crypto equities took a nosedive, tumbling 27%. Even Ethereum? It fell a staggering 45%. Talk about a party pooper. Meanwhile, the total market capitalization took a nosedive of almost 20%, with $650 billion vanishing like your grandma’s secret cookie stash. And if that wasn’t enough, April decided to pile on, with markets currently down a whopping 30% from their January all-time high of $3.9 trillion. It’s like watching a balloon slowly deflate… in slow motion.

But wait, it’s not all bad news. Hougan suggests we should all look for the silver lining. When prices are down, keep your eyes peeled for those things that are hitting new all-time highs. He says they’re the sign of the next bull market. Sure, it sounds like a riddle, but who are we to argue with a seasoned crypto guy?

“Search out things that are hitting new all-time highs when prices are down. They are a sign of where the next bull market will come from.”

— Matt Hougan (@Matt_Hougan) April 16, 2025

In fact, some things are doing pretty well. Stablecoin circulation reached an all-time high of $218 billion, up 13.5% quarter-over-quarter. Who said stablecoins were boring? They’re not only stable, they’re booming! Transaction volume surged 30%, and the stablecoin market cap now sits at $236 billion, making it more valuable than anything other than Bitcoin. Just to add some extra drama, tokenized real-world assets grew 37%, also hitting new records. It’s like a treasure chest in the middle of a battlefield.

Oh, and let’s not forget Bitcoin futures. Those volumes and open interest hit new highs, suggesting institutional investors are paying attention. Sure, Bitcoin’s price might be down, but institutional interest is soaring. Makes you think, doesn’t it?

“As we move into Q2, I would expect these and related areas to lead the market higher.”

But, as they say, all that glitters is not gold. Enter the ugly. The $1.5 billion Bybit hack was a punch to the gut, and don’t even get me started on the meme coin bubble. Those “innovative” tokens with no real purpose other than to ride the hype train collapsed faster than a cheap tent in a storm.

Key Crypto Tailwinds

Bitwise also sees some rays of sunshine peeking through the storm clouds. With central banks signaling they might ease up on tightening, it’s looking like digital assets could get another shot at the glory they deserve. History has been kind to risk assets when these conditions prevail, so who knows? Maybe crypto’s time is coming.

Then there’s the potential for regulatory relief and new frameworks in the US for stablecoins and DeFi. That could turn the tide in a big way. And with trade wars, capital controls, and fiat devaluations, global investors are looking at their portfolios like never before. It’s like crypto is suddenly the cool kid at school, and everyone wants a piece of the action.

“In this environment, Bitcoin (like gold) is being increasingly viewed as a potential hedge: liquid, scarce, and (most importantly) independent of tariffs, capital controls, and currency manipulation.”

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2025-04-17 08:43