- Bitcoin saw a 25% drop in Q1 2025, retreating from its all-time high of $109,000 to below $75,000 by March.
- However, institutional crypto trading surged 141%, driven by pro-crypto policies and a fivefold increase in stablecoin transactions.
In a paradoxical first quarter of 2025, Bitcoin shed 25% of its value, retreating from its $109,000 high to below $75,000 in March. Yet, institutional cryptocurrency trading volume told a much different story—surging 141% year-over-year, according to fresh data from Finery Markets.
This sharp increase is largely attributed to the first 100 days of a new, pro-crypto U.S. administration. January led the charge with a remarkable 163.5% growth in trading activity, driven by BTC then-record-breaking rally. February and March followed with 137% and 129% year-over-year growth, respectively, showcasing a robust market appetite even amid price volatility.
Stablecoins Steal the Spotlight
The standout performer in Q1 wasn’t Bitcoin, but stablecoins. The sector grew fivefold compared to Q1 2024, with the total market cap soaring past $230 billion—up 56% year-over-year. Since January alone, stablecoins added $20 billion to their total capitalization.
Stablecoin-to-crypto transactions dominated institutional portfolios, revealing a growing preference for assets like USDC, especially as European MiCA regulations led to USDT delistings across major EU exchanges. Incredibly, USDC alone grew 32x year-over-year, stepping up as the preferred stablecoin in the regulatory reshuffle.
Market Correction Meets Political Momentum
While the pro-crypto sentiment ushered in a fresh wave of institutional interest, macroeconomic headwinds brought a dose of market realism. A brewing tariff war rattled investors, pushing Bitcoin as low as $74,500 before rebounding to $82,600 in a volatile trading session.
Despite the drop, trading volumes hit an all-time high of $1.8 billion in Q1, with Finery Markets and new partner Zodia Markets projecting continued growth in OTC crypto markets—upwards of 60% this year.
Bottom Line: Opportunity Amid Uncertainty
Though Bitcoin’s price retreated, institutional enthusiasm remains undeterred. The surge in stablecoin usage, the resilience of altcoins like SOL and ADA, and the unprecedented rise in trading volumes paint a bullish picture beneath the surface. As pro-crypto policies continue to unfold, the long-term outlook may hinge more on regulatory clarity than price charts alone.
