The first quarter of 2025 has proven to be a challenging period for the cryptocurrency market, with Bitcoin and Ether experiencing notable price declines. Despite this, crypto analyst Matt Hougan from Bitwise remains optimistic about the potential for a stronger performance in the second quarter.

Hougan described Q1 as the "best worst quarter in crypto's history," highlighting the unusual hit that Bitcoin and Ether took during this time. Bitcoin saw a decline of 11.82%, while Ether experienced a more significant drop of 45.41%. These numbers are surprising given that historically, Q1 has been a strong quarter for both assets. Since 2013, Q1 has been Bitcoin's second-strongest quarter on average, while it has historically been the best quarter for Ether.

Hougan pointed to several catalysts that could potentially drive a more positive outcome for crypto in Q2. One significant factor he highlighted is the increase in global money supply, with central banks around the world signaling a shift towards monetary easing and M2 expansion. Historically, these conditions have been favorable for risk assets, including digital assets. Additionally, the recent rise in stablecoin assets under management to an all-time high of over $218 million could indicate further upside potential for the crypto market.

Another bullish factor Hougan mentioned is the "clean sweep of pro-regulations" in the US, which could provide regulatory clarity and support for the crypto market. He also noted that geopolitical chaos and global economic uncertainties are prompting investors to reassess their portfolios, potentially leading to increased interest in cryptocurrencies.

Looking ahead, Hougan reiterated his prediction that Bitcoin could surge by approximately 138% from its current price by the end of the year. He maintained Bitwise's forecast that Bitcoin could reach $200,000 by the end of 2025. Similarly, crypto exchange Coinbase expressed optimism for the second half of the year, expecting a sentiment reset that could lead to a positive trend for the market.

Overall, despite the challenges faced in Q1, there are several factors indicating that Q2 and the rest of 2025 could bring more positive outcomes for the cryptocurrency market. Investors and traders are advised to conduct their own research and exercise caution when making investment decisions in the volatile crypto space.

Source: https://cointelegraph.com/news/crypto-q1-performance-reverse-q2-four-factors-bitwise?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound