Bitwise: Q1 of this year was the best and worst quarter in cryptocurrency history

Cryptocurrency investment firm Bitwise has called the first quarter of this year the "best and worst" quarter in cryptocurrency history.
According to CryptoPotato on the 17th (local time), Bitwise Chief Investment Officer (CIO) Matt Hogan
Hougan, in his Q1 2025 crypto market review, described the first three months of the year as the best and worst quarter in crypto history, saying the period was filled with frustration.
"The first quarter saw the inauguration of the first pro-crypto US president, the creation of a strategic Bitcoin reserve fund, and the SEC dropping most of its lawsuits," Hogan said.
"This is a positive development in that it marks the end of the Biden administration's all-out war on crypto assets."
He said, "Crypto assets have been dreaming of this kind of development for years.
"But the market and sentiment did not react very positively. The Bitwise 10 Crypto Index fell 18% and crypto stocks fell 2.
The cryptocurrency market as a whole has lost nearly 20% of its total market capitalization in three months, with $650 billion being withdrawn from the market.
Fast forward to April, and the market is currently down 30% from its January 2025 high of $3.9 trillion. But it's not all bad news. "Prices are falling," Hogan said.
"Look for new highs as the market expands, as they could be a signal of where the next bull market is coming from," he advised.
He noted that "stablecoin circulation exceeded $218 billion, up 13.5% during the first quarter, and trading volume also surged 30%."
As of now, the stablecoin market capitalization is $236 billion, roughly 8.6% of the total cryptocurrency market capitalization, making it larger than any other asset class outside of Bitcoin.
Bitwise pointed out several key factors that could reverse the crypto market's downward trend. According to Hogan, global central banks are moving away from tightening monetary policy.
This signals a shift towards easing, and such an environment could be favorable for risk assets, especially digital assets.
New regulatory easing and frameworks for stablecoins and DeFi in the US are also important
Moreover, Hogan said Bitcoin is likely to be a catalyst as global investors rebalance their portfolios in the wake of trade wars, capital controls and devaluations of fiat currencies.
He added that it is increasingly attracting attention as an independent and scarce asset.