icon
icon
icon
icon
$300 Off
$300 Off

News /

Articles /

Crypto Market Cap Drops 18.6% in Q1 2025 Amid Recession Fears

Coin WorldWednesday, Apr 16, 2025 8:30 pm ET
1min read

The crypto market experienced a significant downturn in the first quarter of 2025, with the overall market capitalization falling by 18.6%. This decline resulted in a loss of $633.5 billion, according to the latest quarterly report from CoinGecko. The report highlights that despite a bullish start to the year in January, macroeconomic factors, particularly recession fears, have heavily impacted market sentiment over the past two months.

Investor activity also decreased, with daily trading volumes dropping by 27.3% quarter-on-quarter from the end of 2024. Spot trading volume on centralized exchanges fell by 16.3%, which was partially attributed to the Bybit hack. The report also noted that markets hit a local high around the inauguration of the new administration, which fueled a brief frenzy in Solana meme coin activity. However, this quickly slumped, and the LIBRA scandal further dampened market sentiment.

Bitcoin, the largest cryptocurrency by market capitalization, increased its dominance in Q1 2025, accounting for 59.1% of the total crypto market cap. This is the highest share it has held since 2021, symbolizing its relative stability compared to other altcoins. However, Bitcoin also fell by 11.8% and was outperformed by gold and US Treasury bonds. Ethereum's entire 2024 gains vanished in Q1 2025, and multichain DeFi TVL fell by 27.5%.

Despite some positive developments, such as Solana dominating the DEX trade and Bitcoin ETFs seeing $1 billion in fresh inflows, these were accompanied by significant caveats. Solana's TVL declined by over one-fifth, and total AUM for Bitcoin ETFs fell by nearly $9 billion due to price drops. The report reflects that recession fears are gripping the crypto market, leading to a bearish outlook for the first quarter of 2025.

Comments

Add a public comment...
Post
User avatar and name identifying the post author
ghostboo77
04/17
Crypto winter is here, recession fears are real.
0
Reply
User avatar and name identifying the post author
Gentleman1217
04/17
Altcoins got wrecked, but Bitcoin's dominance is like a safety net. Diversification's key, folks.
0
Reply
User avatar and name identifying the post author
amanoraim
04/17
HODLing Bitcoin, it's still the most stable ship.
0
Reply
User avatar and name identifying the post author
Fit-Possibility-1045
04/17
@amanoraim How long you been HODLing BTC? Any top picks besides BTC?
0
Reply
User avatar and name identifying the post author
Solidplum101
04/17
Gold and bonds beating Bitcoin? Never thought I'd see the day. Macro vibes are wild right now.
0
Reply
User avatar and name identifying the post author
InjuryIll2998
04/17
Crypto's rollercoaster never fails to amuse. Still holding $BTC for the long haul, despite the noise. 🚀
0
Reply
User avatar and name identifying the post author
Oleksandr_G
04/17
Solana's DEX dominance is cool, but its TVL dip worries me. Hodl or fold? Decisions, decisions.
0
Reply
User avatar and name identifying the post author
TenMillionYears
04/17
Crypto's rollercoaster never fails to amuse. What's your take on $BTC dominance? 🚀
0
Reply
User avatar and name identifying the post author
Mylessandstone69
04/17
Gold and bonds beating crypto, talk about a flip
0
Reply
User avatar and name identifying the post author
HobbyLegend
04/17
Altcoins got wrecked, back to the Bitcoin safety net.
0
Reply
User avatar and name identifying the post author
TobyAguecheek
04/17
@HobbyLegend True, Bitcoin's the safe bet now.
0
Reply
User avatar and name identifying the post author
GoRiLLa_Skillz
04/17
Holy!the block option data in BTC stock saved me much money!
0
Reply
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App