Bitcoin is heading for its most significant first-quarter decline since 2020, experiencing a drop of over 7%. Nevertheless, numerous analysts are optimistic that the second quarter may witness a recovery for the cryptocurrency. Bitcoin reached a peak of $108,786 in January 2025, buoyed by enthusiasm following President Trump’s return to the presidency. However, the market quickly turned bearish after Trump’s economic tariffs triggered a steep decline in Bitcoin’s price, plummeting to as low as $76,700 on various exchanges.
Experts suggest that the current volatility may soon settle down, as many negative factors appear to be already accounted for in the market. Sina G., co-founder of 21st Capital, noted that uncertainties surrounding tariffs and governmental expenditures could be clarified shortly, shifting focus to tax reductions, deregulation, and interest rate cuts, which could draw more investment into Bitcoin and other digital assets. Aurelie Barthere, Principal Research Analyst at Nansen, echoed this sentiment, indicating that the uncertainty regarding tariffs may be subsiding, particularly as Treasury Secretary Bessent adopts a more practical stance on tariff discussions.
Nonetheless, the announcement of reciprocal tariffs between the U.S. and Eurozone set for April 2 might introduce further volatility. Barthere predicts that the market could witness price fluctuations following the tariff negotiations. Still, considering Bitcoin’s historical Q2 performance, which averages a 27% increase over the past 13 years, there is optimism for recovery in the next quarter, with Bitcoin showing gains in at least seven of the last 13 years during Q2.
The regulation of stablecoins could further enhance market sentiment. Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, hinted at the Digital Asset Summit 2025 that stablecoin regulations could be finalized by the end of June, potentially leading to improved liquidity in the market and contributing to a significant rise in Bitcoin’s price, with Standard Chartered forecasting a target of $500,000.
Simultaneously, meme coins are experiencing a revival, primarily fueled by the introduction of Morning Routine (ROUTINE), inspired by a trending video of fitness influencer Ashton Hall. The coin’s market capitalization soared to $19 million within just two days of its launch. Hall’s viral video, which amassed over 667 million views on X (formerly Twitter), showcased his morning routine, including an ice water facial. Other meme coins, such as Fartcoin (FARTCOIN) and SPX6900 (SPX), also saw significant recoveries, although some, like Unicorn Fart Dust (UFD) and Toshi (TOSHI), faced declines.
As regulatory changes and the overall economic landscape impact market sentiment, analysts are attentively observing how these dynamics will affect the trajectory of Bitcoin and other digital assets.
