- Bitcoin fell 10% in Q1 2025, while Ethereum dropped 45%, per Bloomberg.
- Trump’s trade policies as president unsettle markets, driving the crypto crash.
- Hoskinson says Apple, Microsoft, Google, and Facebook may mainstream crypto soon.
Cryptocurrencies and crypto-related stocks have plummeted sharply in recent months this year.
This general decline in prices comes amid issues with the global economy and the fears of a trade war between the US and several other countries. This is without mentioning the fears of an incoming recession, with digital assets struggling to maintain their standing.
Bitcoin and Ethereum Take a Hit
Bitcoin has lost over 10% of its value so far in Q1 of this year. On the other hand, Ethereum has suffered an even stronger decline after dropping by around 45%, according to a recent report from Bloomberg.
This downturn comes after the crypto market experienced a strong start to the year, with the victory of Donald Trump in the last US presidential election. Interestingly, Bitcoin surged to a new all-time high on the day Trump was inaugurated. However, the performance of the flagship cryptocurrency has been lackluster since then, as the bullish momentum took a strong dip.
The report from Bloomberg shows that Donald Trump’s trade policies since becoming president have unsettled the financial markets, and are a direct contributor to the ongoing crash.
Aside from regular cryptocurrencies, crypto-related stocks have not been spared from the downturn either. Major players in the space like Coinbase, Riot Platforms, Core Scientific and Galaxy Digital have all dropped below their pre-election levels. Initially, these stocks benefited from investor enthusiasm after Donald Trump’s victory. However, the ongoing trade disputes have led to a complete reversal in sentiment.
These Companies Could Fuel the Next Bull Run
Despite the market’s struggles, the long-term outlook for crypto adoption is still promising. According to Charles Hoskinson in a recent tweet, a major shift could be on the way to bringing crypto assets mainstream. The Cardano founder believes that if key regulatory bills are passed, they might pave the way to better crypto adoption.
He pointed to two of the most important examples of legislation waiting to be passed: The stablecoin bill and a market structure bill. Both bills are under discussion in Congress, with Hoskinson expecting passage soon.
Once these are in place, the Cardano founder believes that tech giants like Apple, Microsoft, Google and Facebook will start to integrate crypto wallets into their platforms. Their vast user bases could onboard billions, massively boosting crypto adoption worldwide.
Overall, while the short-term turbulence has spooked investors, the crypto industry remains bullish on the long term. If these companies follow through on integrating crypto into their ecosystems, the market could see a massive surge in bullish activity.
