As we enter the final trading week of March, Bitcoin (BTC) is on track for its worst first quarter performance since 2020 when the Covid-19 pandemic struck.
So far in the first quarter of 2025, Bitcoin has declined 10%, putting it into a correction and marking its worst Q1 performance in five years.
At the same time, Ethereum (ETH), the second largest cryptocurrency by market capitalization, has posted its weakest first quarter performance since its inception in 2015.
The poor showings for both Bitcoin and Ethereum come as investors retreat from risk assets such as cryptocurrencies and stocks.
Markets remain weak and volatile as U.S. President Donald Trump continues to push destructive trade policies that include import tariffs, and as concerns rise about a U.S. recession.
Analysts say investors should expect increased volatility in crypto prices as we approach April 1 and traders look to rebalance their portfolios heading into the year’s second quarter.
Weakness in cryptocurrencies has also been exacerbated by investor disappointment over President Trump’s policies.
Specifically, investors have been letdown by Trump's lack of a concrete plans for a Bitcoin strategic reserve and a tax-free crypto capital gains policy.
Bitcoin is currently trading at $84,200 U.S., down 23% from an all-time high of just over $109,000 U.S. reached on Jan. 20 of this year, the day of Trump’s inauguration.
