9 Reasons Bitcoin Had Worst Q1 in Seven Years

Despite widespread excitement for the start of Donald Trump’s second presidential term, it’s been a disappointing Q1 for Bitcoin. Here are nine reasons why.

1. Tepid Price Performance

Data from Coinglass shows BTC contracted by 11.82% between January and March — handing back all the gains that led to a record high on inauguration day. To put this into context, average returns during this period have stood at 51.2% since 2013, and this is Bitcoin’s worst Q1 performance in seven years.

2. Impatient Bitcoiners

Following Trump’s promises on the campaign trail, some Bitcoiners had widely expected the president to sign pro-crypto executive orders on his first day in office. Sentiment soured when this didn’t end up happening until March 6.

3. A Disappointing Reserve?

There was a lot of buzz surrounding Trump’s plans to establish a strategic BTC reserve, which would see crypto seized from criminals held as an investment by the U.S. While this policy has now been confirmed, the White House has stressed no additional Bitcoin will be purchased with taxpayer money unless this can be achieved in a “budget-neutral” way.

4. Taxing Tariffs

The president’s pursuit of punishing tariffs on goods imported from the U.S. have contributed to aggressive sell-offs of riskier assets, including Bitcoin. And toward the end of Q1, there was immense uncertainty surrounding what Trump would unveil on what he described as “Liberation Day.”

5. Close Correlations

Plenty of attention is being paid to Bitcoin’s relationship with the flagship S&P 500 index. Right now, both the crypto and stock markets are rising and falling in lockstep — meaning wider economic jitters are affecting digital assets. That’s unlikely to change as we head into Q2.

6. Unsure Institutions

The first quarter of 2025 delivered an extensive losing streak for ETFs tracking Bitcoin’s spot price — with persistent outflows from funds offered by the likes of BlackRock and Fidelity. Data from SoSoValue shows total net assets in these Wall Street products stood at $109.9 billion as the year began, but plunged to a mere $93.1 billion by March 31.

7. Pro-Crypto, Not Pro-Bitcoin?

Trump also attracted the ire of many Bitcoiners when an out-of-the-blue post on Truth Social suggested that the U.S. would invest in a basket of cryptocurrencies — including ETH, XRP, SOL and ADA — not just BTC. Those plans were eventually watered down quite substantially, with altcoins separated into a distinct stockpile.

8. Economies Sit on Sidelines

While the president’s ambition is to make the U.S. a world leader when it comes to Bitcoin ownership and adoption, few major economies have emulated his move to establish a strategic Bitcoin reserve. Such a policy has been explicitly ruled out by the likes of the U.K. and South Korea.

9. Bear Market? 

Following a fall of more than 20% from a record price of $109,000 set back in January, BTC is now technically in a bear market. Avid Bitcoiners maintain this correction is perfectly normal, healthy and nothing to worry about — likening it to a temporary pullback before acceleration to fresh all-time highs. Nervous investors will be hoping they’re right.

Note: The opinions expressed in this column are those of the author and do not necessarily represent the views of FXCOINZ, its owners, or affiliates.