Bitcoin is set to close its worst first quarter since 2020, with a decline of over 7%. Despite this downturn, many analysts believe that the cryptocurrency could see a rebound in the second quarter. Bitcoin reached an all-time high of $108,786 in January 2025, driven by optimism following President Trump’s return to office. However, the market quickly reversed as Trump’s economic tariffs caused a sharp decline, with Bitcoin dropping to as low as $76,700 on some exchanges.
Analysts Expect Volatility to Ease
While Bitcoin has struggled in Q1, some analysts are hopeful that the market’s volatility will subside in the near future. Sina G., co-founder of 21st Capital, suggested that uncertainty regarding tariffs and government spending could be resolved soon. As focus shifts toward tax cuts, deregulation, and potential rate cuts, more capital may flow into Bitcoin and digital assets.
Aurelie Barthere, Principal Research Analyst at Nansen, also noted that the U.S. administration, particularly Treasury Secretary Bessent, has taken a more pragmatic approach to tariff negotiations, potentially easing tariff-related uncertainty.
April Tariffs Could Cause More Volatility
However, the upcoming reciprocal tariffs between the U.S. and the Eurozone, set for April 2, could lead to further volatility. Barthere predicts that the market might experience price swings as the tariffs are negotiated. Despite this, Bitcoin’s historical performance in Q2 suggests a potential rebound, as it has posted an average increase of 27% in the second quarter over the last 13 years. Bitcoin has gained in at least seven of those years.
Regulatory Developments and Market Sentiment
In addition to potential tariff impacts, stablecoin regulations could help boost market sentiment. Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, shared that stablecoin regulations could reach President Trump’s desk by the end of June. This could lead to improved market liquidity, possibly driving a significant Bitcoin price increase, with Standard Chartered setting a $500,000 price target for the cryptocurrency.
Meme Coins and Market Trends
Meanwhile, meme coins have been making a comeback. The launch of Morning Routine (ROUTINE), inspired by a viral video of fitness influencer Ashton Hall, caused its market cap to surge to $19 million within two days. The video, which accumulated over 667 million views on X (formerly Twitter), featured Hall’s morning routine, including an ice water facial. Other meme coins like Fartcoin (FARTCOIN) and SPX6900 (SPX) also saw notable recoveries, while some coins like Unicorn Fart Dust (UFD) and Toshi (TOSHI) experienced declines.
Looking Ahead
With regulatory changes and economic factors influencing market sentiment, analysts are watching closely to see how these elements will affect Bitcoin and other digital assets in the coming months. As the market navigates these developments, there is cautious optimism that Bitcoin could rebound in Q2 and beyond.
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