After reaching a record of $3.8 trillion on January 18, shortly before Donald Trump was sworn in, the cryptocurrency market faltered in the first quarter of 2025, losing 18.6% of its value to conclude at $2.8 trillion. A decline in investor interest was shown by the 27.3% decrease in trading volumes, which averaged $146 billion per day. Bitcoin’s dominance rose toward the 60% level as altcoins recorded severe losses. Ethereum lost 2024 gains as it fell 45.3%. These changes paved the way for a quarter filled with breathtaking peaks, destructive hacks, and daring regulatory actions. Every instant changed the market, exposing its strengths and weaknesses.
We welcome you to review the most significant crypto events of the first part of the year with the regular article from the HiRiBi blog.
Bitcoin’s Peak and Market Ripples
Bitcoin surged to $106,182 on January 22, fueled by post-inauguration optimism, but ended Q1 at $82,514, down 11.8%. Its dominance climbed to 59.1%, a level unseen since 2021, as altcoins faltered. Ethereum’s 45.3% drop to $1,805 dragged its market share to 7.9%, the lowest since 2019.
Other majors like XRP and BNB held steady, but smaller altcoins bled heavily. Investor confidence waned, with trading volumes dipping as risk appetite faded. Gold, up 18%, outshone Bitcoin, drawing cautious capital.
Additionally, stablecoins like Tether gained traction and rose to 5.2% of the market as investors sought protection. When the drop in Bitcoin triggered a broader sell-off, it demonstrated the market’s weakness. This unpredictability set the stage for Solana’s turbulent rise.
Solana’s Meme Coin Frenzy
Solana captured 39.6% of decentralised exchange trades in Q1, peaking at 52% in January, driven by a meme coin boom. The launch of TRUMP and MELANIA tokens sparked a “political memecoin” wave, pushing pump.fun’s daily token deployments to 72,000.
Coins like FARTCOIN thrived, with millions graduating to exchanges. But the tide turned with LIBRA’s collapse, rug-pulled after Javier Milei’s endorsement, crashing from $4.6 billion to $221 million. Pump.fun’s activity dropped 56.3%, and Solana’s dominance slipped to 23.4% by March.
Newcomers Sonic and Berachain edged out Optimism and Polygon, reshaping the DEX hierarchy. The frenzy fueled Solana’s all-time high of $293.7 billion in trading volume. Yet, the rug-pulls exposed speculative risks, soon compounded by a major security breach.
Bybit Hack Shakes Confidence
On February 21, North Korea’s Lazarus Group stole $1.5 billion in Ethereum from Bybit, exploiting vulnerabilities in Safe Wallet’s software during a routine transfer. Hackers intercepted the transaction, redirecting funds to their wallets via malicious code.
Bybit’s trading volume crashed 52.4% month-on-month, and Bitcoin dropped 20% from its January high. The hack resulted from flawed multisig processes, shaking investor confidence in the exchange. At least $160 million was laundered within 48 hours, underscoring enforcement challenges. The FBI linked the attack to Lazarus Group’s phishing tactics, targeting Bybit’s staff.
Other exchanges tightened protocols, but the damage lingered. This breach fueled calls for tighter regulations, which gained traction as governments responded to the market’s volatility.
Regulatory Shifts Gain Momentum
Trump announced a Strategic Bitcoin Reserve on March 6 utilising Treasury-seized assets, marking the U.S.’s shift to embrace cryptocurrency. Following the departure of Gary Gensler, the SEC took a more accommodative stance by ceasing its investigations into companies such as Coinbase and Uniswap.
At the first-ever Crypto Summit, industry leaders, including Coinbase’s Brian Armstrong, convened at the White House to discuss banking system integration. The GENIUS Act, which seeks to regulate stablecoins and promote their usage, was proposed by the Senate on March 13.
Around the world, the U.K. started blockchain-based bond pilot projects and drafted laws to categorise digital assets as property. China hinted at possible regulatory changes by holding private high-level discussions to discuss Bitcoin’s role in its economy. While Solana CME futures attracted conventional investors, Ethena Labs obtained $100 million from Franklin Templeton to produce institutional stablecoins.
Furthermore, BlackRock expanded its Bitcoin ETF into Europe, driving global adoption. Several U.S. states, including Texas and Wyoming, established their own Bitcoin reserves, reflecting local policy innovation. These developments sparked optimism, but Trump’s unpredictable influence created a mix of promise and uncertainty.
Trump’s Mixed Impact
Trump’s pro-crypto agenda drove early gains, with Bitcoin soaring 50% post-election to $104,000. His administration scrapped the SEC’s SAB 121 rule, easing institutional adoption, and appointed crypto-friendly figures like Paul Atkins.
However, his TRUMP and MELANIA meme coins, which soared to all-time highs of $73 and $13, respectively, crashed more than 80%, exposing the speculative risks of memes. An executive order promoted a crypto stockpile but stopped short of a federal Bitcoin reserve, disappointing enthusiasts.
Tariffs and recession fears further dampened sentiment, contributing to Bitcoin’s bearish turn. The White House Crypto Summit drew industry leaders, yet failed to clarify long-term policy.
Final Thoughts: A Quarter of Reckoning
Q1 2025 delivered a rollercoaster for the crypto market, with Bitcoin’s record high and subsequent dip reflecting its volatile core. Solana’s meme coin surge and collapse revealed speculative excesses, while Bybit’s $1.5 billion hack underscored security gaps. Trump’s audacious regulatory actions raised hopes for stability, but his erratic tactics created doubt. These incidents—Bitcoin’s hegemony, Solana’s craze, Bybit’s hack, changes in international regulations, and Trump’s power—defined a pivotal quarter. The market, which closed at $2.8 trillion, was at a turning point when it had to strike a balance between innovation and the need for resilience and trust.
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