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BitcoinSistemi 2025-04-11 05:07:08

Analytics Firm Says “Bull Could Spark in Second Quarter,” Predicts Fate of Altcoins if Bitcoin Rises

US President Donald Trump's return to the White House initially fueled optimism in crypto markets, with Bitcoin (BTC) hitting an all-time high in January and US stocks following suit. However, this upward momentum was short-lived as Trump’s rapid imposition of tariffs introduced new uncertainty, triggering volatility and a pullback in trading activity, according to blockchain analytics firm Kaiko’s Q1 2025 report. Kaiko reported that weekly trading volumes for Bitcoin, Ethereum, and the top 10 altcoins fell by 30% compared to pre-election levels observed in November 2024. Average weekly volume stood at $266 billion in Q1. The decline was primarily due to the decline in demand for altcoins and cautious risk appetite, especially on offshore exchanges. “Altcoin volatility has soared in early 2025, reaching multi-year or all-time highs for select tokens, most notably Cardano (ADA),” Kaiko analysts wrote, adding that “Bitcoin’s volatility has also increased sharply, rising from 34% in February to 51% in March.” This widening volatility gap between Bitcoin and altcoins has made some investors more risk-averse and discouraged entry into altcoin markets amid broader macroeconomic concerns. Despite Bitcoin’s dominance, it was not immune to market turbulence in Q1. BTC lost 12% during the quarter, its worst performance since 2018, and is currently trading around 25% below its January peak. It still outperformed most altcoins, especially tokens in the AI and memecoin sectors, which have seen average losses of over 50%. “While expectations for U.S. rate cuts have increased, this is not the kind of dovish turn markets were hoping for,” said Kaiko analyst Dessislava Aubert. “Risk-off sentiment has weighed on both equities and crypto assets.” Related News: Grayscale, Managing Billion Dollars, Said "Tariffs Will Benefit Bitcoin", Explained The Reason Despite a shaky first quarter, analysts believe that Q2 could bring new momentum. Historically, crypto markets tend to outperform in Q2, and several upcoming catalysts could support this pattern. Kaiko’s Adam McCarthy cited Bitcoin’s institutionalization as a key driver, noting that altcoins could benefit in a similar way if exchange-traded products (ETPs) gain regulatory approval. Currently, more than 40 crypto-related ETF applications are awaiting review by new SEC Chairman Paul Atkins and his team. “If there is going to be a bull run in the second half of 2025, altcoins will need to see similar uptake,” McCarthy said, adding, “The introduction of ETFs and other investment products could significantly increase demand.” The expanding stablecoin ecosystem is another promising signal, with the total stablecoin supply increasing by 33% since late 2024 to surpass $230 billion. Kaiko noted that growth in this segment, dominated by USDT and USDC, often precedes rallies in the broader crypto markets. Kaiko analysts concluded that continued policy clarity and macroeconomic downturn, as well as a potentially weaker US dollar, could help Bitcoin decouple from traditional assets in the coming months. *This is not investment advice. Continue Reading: Analytics Firm Says “Bull Could Spark in Second Quarter,” Predicts Fate of Altcoins if Bitcoin Rises

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