Bitcoin, Dogecoin Shaken By Trump's Tariff Announcements In Q1 But This Lesser-Known Crypto Exploded 490% — Here's Why

The first quarter of 2025 was a tumultuous period for the cryptocurrency market, with major coins like Bitcoin and Dogecoin experiencing significant volatility. The primary catalyst for this turbulence was the tariff announcements by President Trump, which sent shockwaves through the market and led to a risk-off sentiment. However, amidst this chaos, a lesser-known cryptocurrency, Four (FORM), managed to surge by an astonishing 490%. Let's delve into the factors that contributed to this dramatic performance and compare it to the struggles faced by more established cryptocurrencies.

The tariff announcements by President Trump had a profound impact on the overall cryptocurrency market. The economic uncertainty caused by these tariffs led to a decline in the total cryptocurrency market capitalization from $3.26 trillion on January 1, 2025, to $2.68 trillion at the end of the quarter, marking a 17% decline. This downturn was largely attributed to the growing correlation between Bitcoin and U.S. equities, including blue-chip averages like the S&P 500 and the Nasdaq Composite. This correlation explains the cryptocurrency market's reaction to U.S. macro triggers, as seen in the 11% year-to-date slide in Bitcoin and the 44% decline in Ethereum. Additionally, top altcoins such as Solana, Dogecoin, and Cardano also failed to escape the downturn, all shedding more than 20% of their value since 2025 began.

The volatility observed in Bitcoin and Dogecoin during Q1 2025 can be attributed to the market's sensitivity to macroeconomic factors and the overall risk-off sentiment caused by the tariff announcements. The uncertainty around trade policies led to a decline in investor confidence, which in turn affected the performance of major cryptocurrencies. However, this volatility also created opportunities for lesser-known cryptocurrencies to shine.

The 490% surge in the lesser-known cryptocurrency, Four (FORM), can be attributed to several underlying factors and market dynamics. FORM, the token of the newly-branded GameFi network Four, experienced a significant rally in the first quarter of 2025. This surge was driven by growing interest around its latest product, Four.meme, an ecosystem for meme coins. The coin set an all-time high of $2.62 last week amid this increasing interest.



In contrast, more established cryptocurrencies like Bitcoin and Ethereum faced a different market dynamic during the same period. The total cryptocurrency market capitalization shrank from $3.26 trillion on Jan. 1 to $2.68 trillion at the end of the quarter, marking a 17% decline. Market barometer Bitcoin BTC/USD slid 11% year-to-date. Ethereum ETH/USD, the second most valued cryptocurrency, recorded a much sharper decline of 44%. This downturn was largely due to the economic impact of tariffs imposed by President Donald Trump on key U.S. trading partners, which led to a risk-off sentiment in the market. Notably, Bitcoin's correlation with U.S. equities, including blue-chip averages like the S&P 500 and the Nasdaq Composite, has grown considerably year-to-date, explaining the cryptocurrency market's reaction to U.S. macro triggers.

The performance of FORM highlights the potential for lesser-known cryptocurrencies to experience significant gains driven by specific product developments and market interest, while more established cryptocurrencies like Bitcoin and Ethereum are more influenced by broader economic factors and market sentiment. As the cryptocurrency market continues to evolve, it will be interesting to see how these dynamics play out and which coins emerge as the winners in this rapidly changing landscape.