Even though Bitcoin (BTC) dropped almost 12% in the first quarter to $82,683.16 due to market instability, it has still managed to outperform both the S&P 500 and gold since Election Day.
Recently, gold reached a new peak exceeding $3100, gaining nearly 14% since November 5. In contrast, the S&P 500 has decreased by about 3% over the same timeframe.
Meanwhile, BTC has surged since Election Day, rising 22% from its initial price of $67,823.49.
Market reactions and liquidity constraints
The latest analysis indicated that Bitcoin’s price decline in the first quarter was influenced by a “sell-the-news” approach.
Traders may have reevaluated the absence of concrete regulatory advancements following the inauguration of President Donald Trump, which has adversely affected prices.
Additionally, the persistently tight liquidity has continued to impact market dynamics, remaining constrained within both spot and derivatives markets, while volatility has diminished since its spike earlier in the year.
Investors are monitoring inflows into US-listed spot Bitcoin ETFs for directional hints, although these inflows have slowed since their initial rollout.
Alongside these indicators, analysts pointed out that traders are closely observing potential changes in Federal Reserve policies, especially related to inflation metrics and interest rate guidance.
While signs of capitulation have eased, participants in the market continue to exercise caution. The analysis noted that significant price movement outside the current range of $78,000 to $88,000 is unlikely in the short term without a strong catalyst.
Altcoins face ongoing challenges
Despite the price drop, Bitcoin’s relative strength has increased amid a broader downturn in the cryptocurrency market. BTC’s market dominance has risen to over 61%.
This change indicates a shift from altcoins back into Bitcoin as investors look to lower risk exposure, further demonstrated by the performance of major-cap altcoins.
Ethereum (ETH) is on track to conclude its second-worst first quarter ever, plummeting over 45% to $1,832.80 as of the latest update. In the meantime, Solana (SOL) was trading at $125.80, down over 33% in the first quarter after reaching an all-time high of $295.11.
Other significant assets like BNB and Cardano (ADA) also witnessed declines during the first quarter, with corrections of 13.6% and 22%, respectively. The only exception is XRP, which experienced a slight increase of 1%, trading at $2.10 at the time of the latest update.
Bitcoin Market Data
As of 10:37 pm UTC on Mar. 31, 2025, Bitcoin holds the #1 position by market cap, with its price being up 0.05% in the past 24 hours. Bitcoin’s market capitalization stands at $1.64 trillion with a 24-hour trading volume of $30.07 billion. Discover more about Bitcoin ›
Crypto Market Summary
At the same time 10:37 pm UTC on Mar. 31, 2025, the total value of the crypto market is approximately $2.67 trillion, with a 24-hour volume of $82.94 billion. Bitcoin’s dominance is currently 61.38%. Learn more about the broader crypto market ›
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