After a stellar 153% gain in 2024—driven by rising institutional interest, the debut of Bitcoin ETFs, and supportive regulation—2025 has opened on a far more turbulent note for Bitcoin and the wider crypto market. Regulatory headwinds, macroeconomic uncertainty, Donald Trump’s tariff-driven policies, and escalating global trade tensions have contributed to a sharp 11.7% drop in Bitcoin’s price in Q1. This marks Bitcoin’s second-weakest first quarter in the last decade, with only the 2018 market crash faring worse, according to data from CryptoPresales.com.
Only Three Q1s in the Past Decade Have Ended in the Red
Historically, Q1 has been unpredictable for Bitcoin, with some years bringing growth and others massive volatility. Bitcoin’s Q1 returns were the strongest in post-halving years, 2013, 2017, and 2021, reaching an average of 21.4% over the past decade, driven by optimism and innovation.
According to CoinMarketCap and IntoTheBlock data, Bitcoin has had seven strong Q1s over the past decade, with its three-month gains ranging from 11% in 2016, 2017, and 2019 to a remarkable 103% in 2021. The past two years also brought impressive early gains, with Bitcoin’s Q1 returns reaching 72% and 65%, respectively.
But 2025 tells a different story. Rising uncertainty in global markets, triggered by higher interest rates, inflation concerns, global trade wars, mounting regulatory challenges, and ETF outflows, triggered a sharp 11.7% Bitcoin price drop in Q1. Moreover, that ranks this quarter as Bitcoin’s second-worst start to a year in a decade, trailing only 2018, when BTC plunged nearly 50% post-bull cycle. The only other time Bitcoin’s price dropped in Q1 was in 2020, when the pandemic-led crash led to a 10.6% dip.
Bitcoin Dominance Continues Growing Despite its Price Correction
Despite a considerable 11.7% price drop, which turned Q1 into its second-worst start to a year in a decade, Bitcoin dominance continues rising.
The dominance ratio is one of the oldest ways to track crypto performance. It shows how much of the total crypto market is made up by Bitcoin’s market value. In simple terms, it compares Bitcoin to other cryptocurrencies like altcoins, stablecoins, or NFT-related tokens. It also gives a sense of investor confidence in Bitcoin compared to the rest of the market.
The Tradingview data show that the Bitcoin dominance ratio has been growing for five consecutive months, rising from 57.2% last November to 63.7% in April. That’s nearly a 10% year-over-year increase and the highest level in four and a half years.
