Q1 Crypto Performance Hits Rock Bottom as Trump Nears 100-Day Milestone

As of March 21, 2025, the cryptocurrency market is experiencing its worst first-quarter performance in years, with Bitcoin down 10% and Ether seeing its weakest quarter since its inception. The first quarter has been underwhelming for the crypto industry, with price action being particularly disappointing. With just over a week left until the end of March, Bitcoin has been relatively stable in March, but its overall Q1 performance is its worst since 2020. The market is also nearing the end of President Donald Trump's first 100 days in office, a period often marked by uncertainty and market volatility. According to the London Crypto Club, the approach of quarter-end could lead to increased market volatility and unpredictable price swings due to negative liquidity and position management. Despite short-term market weakness, a bullish outlook is predicted for the second quarter, driven by factors such as a more dovish tone from the Federal Reserve, a weakening US dollar, increased EU fiscal spending, and a slowing but stable US economy. Bitcoin prices dropped following Trump's lack of concrete updates on a bitcoin strategic reserve or tax-free crypto capital gains policy. Market participants were hoping for a tax-free capital gains framework or a bitcoin national reserve accumulation plan, but instead, Trump reiterated his general support for the crypto industry and the role of stablecoins in maintaining the US dollar's dominance in global trade. While this is seen as supportive in the long term, the lack of immediate policy commitments is viewed as a short-term bearish signal. Analysts recommend staying heavily invested, as the market could react swiftly to the next positive development, with support levels not far from current prices.