Bitwise experts described the first quarter’s results as “disappointing,” yet highlighted several positive developments and identified potential drivers for the resurgence of the leading cryptocurrency.
Well known: Q1 in crypto was frustrating.
Less well known: Q1 saw all-time highs for
— Stablecoins ($218B)
— Tokenized real-world assets ($19B)
— BTC futures trading volume ($800B+)
— BTC futures open interest ($16B)
— BTC held by public companies (688K)
— Ethereum and Layer 2… pic.twitter.com/RSnC1pYHXv— Bitwise (@BitwiseInvest) April 16, 2025
In their market review for the year’s first three months, analysts noted a favorable shift in regulatory policy in the United States:
- President Donald Trump, through executive orders, established a task force on digital assets and mandated the creation of a bitcoin reserve;
- authorities halted Operation Choke Point 2.0, which targeted debanking industry participants;
- SEC closed most investigations against crypto companies and eased its approach to DeFi.
In the first quarter, the industry recorded several peaks, according to Bitwise specialists:
- stablecoin capitalization reached $218 billion;
- the tokenized assets sector expanded to $19 billion;
- bitcoin futures trading volume exceeded $800 billion, with open interest in derivatives at $16 billion;
- public companies accumulated approximately 688,000 BTC in reserves;
- the total transaction value in Ethereum and L2 blockchain ecosystem networks surpassed $1.2 billion.
“As we move into the second quarter, I expect these and related areas to drive the market towards further growth,” wrote Bitwise’s Chief Investment Officer Matt Hougan.
Fuel for Growth
The company’s experts pointed to four key catalysts for the anticipated rally revival:
- the growth of the global money supply (M2 aggregate), which “has historically been a favorable condition” for risk assets like bitcoin and cryptocurrencies. An additional factor could be the uncertainty surrounding the introduction of trade tariffs;
- the continuation of pro-crypto policies by the U.S. government and greater regulatory clarity;
- the expansion of stablecoin adoption by traditional financial institutions;
- the resurgence of the narrative of bitcoin as hard money and digital gold, capable of serving as a hedge, independent “of tariffs, capital controls, and currency manipulations.”
Analysts predicted that “geopolitical chaos” would prompt investors to reassess their portfolios.
“A decline in faith in institutions opens the door for bitcoin as a global asset,” they concluded.
Earlier in April, Hougan reaffirmed the forecast for the leading cryptocurrency — $200,000 by the end of the year amid the weakening of the U.S. dollar.