2025 Q1 Crypto Assets Market Analysis

In early 2025, the Crypto Assets market experienced a series of significant events. Although the positive political attitude at the beginning of the year drove prices up, a "buy the rumor, sell the news" phenomenon occurred after Trump's inauguration. Both the S&P 500 and Bitcoin fell by 15-20%, while small-cap stocks performed even worse.

On a macro level, the market is concerned about increased policy uncertainty and the risk of stagflation. The tariff plan implemented by Trump has lowered consumer confidence, corporate profits, and GDP expectations. The establishment of the Government Efficiency Department (DOGE) has also increased uncertainty.

Within the industry, events such as the memecoin bubble burst and a hacking attack on a certain trading platform have further undermined market confidence. In the first quarter, the median price of tokens fell by over 50%, with almost all tokens experiencing a decline.

However, such a significant correction is not uncommon in the history of Crypto Assets. Past experiences indicate that a strong rebound often follows a steep decline. Multiple market sentiment indicators suggest that the worst phase of selling may have already passed.

At the same time, favorable interest rates and liquidity conditions support risk assets. Major economies around the world are taking stimulus measures, which typically drives up assets like Bitcoin.

From an industry development perspective, many positive factors are overlooked by the market, such as favorable policy changes and improved fundamentals. Blockchain companies have generated substantial revenue, and user activity continues to set new highs.

Despite the high uncertainty in the short term, as the volatility caused by tariffs gradually subsides, investors may refocus on the long-term positive factors and strong fundamentals of Crypto Assets. As a pioneer of growth assets, Crypto Assets may rebound and perform outstandingly.