The first four months of 2025 in the cryptocurrency market were marked by high volatility, shifts in investor sentiment and increased influence of macroeconomic factors. Despite short-term corrections, the market retains the potential for growth in the second quarter.
Total capitalization and market dynamics
Peak capitalization: $3.8 trillion (January 18, 2025).
Quarterly low: $2.7 trillion (end of March 2025).
Current capitalization: $2.97 trillion (as of April 29, 2025).
Bitcoin’s share: 63.56% of total capitalization.
The 18.6% decline in capitalization in the first quarter was due to macroeconomic uncertainties, including trade tariffs and interest rate fluctuations.
Market leaders and outsiders
Leaders:
FARTCOIN: up 100% for the week of April due to increased demand for meme tokens.
Hyperliquid (HYPE): up 30% after breaking the downtrend.
Curve DAO (CRV): up 20%, recovering above the 20-day EMA.
Outsiders:
Pi Network (PI): down 36% due to selling pressure.
Story Protocol (IP): Down 25%, continuing decline since late March.
Jupiter (JUP): Down 23.5%, hitting a new low.
Key trends
Bitcoin dominance: increase to 63.56%, indicating investors’ preference for more stable assets.
Declining market activity: average daily trading volume fell 27.3% in the first quarter, reflecting investor caution.
Macroeconomic impact: trade tariffs and US Federal Reserve policy put pressure on the market, causing short-term corrections.
Near-term outlook
Analysts expect that the market could recover in the second quarter of 2025, especially if the macroeconomic situation stabilizes. Bitcoin is seen as a potential safe haven asset amid economic uncertainty. However, investors should be prepared for continued volatility and keep a close eye on macroeconomic indicators and regulatory developments.
