Crypto Market Sheds $633B in Q1 — Bitcoin, Ethereum Take the Hit

The crypto market seen a sharp decline in the Q1 of 2025, losing $633.5 billion in total market value. Data from CoinGecko shows that the market shrank by 18.6% over the three-month period, following a short-lived price surge in early January. The drop was linked to economic slowdown fears and reduced trading activity.

The report also notes that trading volumes on centralized exchanges fell 16.3% compared to Q4 2024. Daily activity across the market dropped even further—down 27.3% from the previous quarter. CoinGecko pointed to various factors behind the pullback, including a major security breach at Bybit. The platform’s issues reportedly discouraged short-term traders and reduced confidence.

Bitcoin Remains on Top, but Price Falls

Bitcoin held its position as the most dominant cryptocurrency in Q1 2025, accounting for 59.1% of the overall market valuation. This was the highest level of market control it has achieved since 2021. 

Despite the increased share, Bitcoin’s value declined by 11.8% over the same period, showing that its stronger presence did not shield it from the broader market downturn.

The report explained, “Even with a larger market presence, Bitcoin’s price performance remained weak. Gold and government bonds were safer options for investors during this period.”

The launch of new Bitcoin ETFs brought in about $1 billion in new investment, but this was not enough to offset the impact of falling prices. The total assets held in ETFs dropped by nearly $9 billion, signaling cautious investor behavior.

Ethereum, DeFi, and Altcoins Slide Further

Ethereum (ETH) faced steep losses during the first quarter of 2025, reversing the gains it made throughout the previous year. Despite a strong performance in 2024, Ethereum’s value dropped sharply over a span of three months, reflecting broader weakness across the crypto sector.

Decentralized finance (DeFi) also saw heavy outflows. Projects running across various blockchains experienced a 27.5% drop in total value locked (TVL). Solana, despite maintaining active decentralized exchange (DEX) usage, recorded a TVL decline of over 20%. The report noted, “Solana’s on-chain traffic stayed consistent, but a noticeable pullback in liquidity caused a drop in locked assets.”

Several other altcoins dropped in value, though the report did not go into detail. The overall trend showed capital leaving high-risk assets in favor of safer options or stablecoins.

Early-Year Gains Fade as Economic Worries Grow

The start of the year brought a short rally in crypto prices, driven by optimism around policy changes under the new U.S. administration. The TRUMP meme coin saw fast gains on Solana-based platforms, helping fuel a short spike in trading.

That rally ended quickly. As recession fears grew, investor behavior shifted. “What started as a promising year quickly changed by March,” the report mentioned. A scandal involving the LIBRA project added more uncertainty and reduced market confidence.

Despite isolated inflows and temporary spikes in interest, most of the top digital assets ended the quarter in the red. The report suggests that investors may wait for clearer economic signals before returning in larger numbers.