[Bitwise] Q1 Crypto Market Review – 2025

10 Noteworthy Developments in Q1 2025

• Trump Signs Sweeping Crypto Executive Order: Trump signs executive order on “Strengthening American Leadership in Digital Financial Technology,” ushering in a new era for crypto.
• U.S. Establishes Strategic Bitcoin Reserve: Trump delivers on campaign promises, signing executive order to create a Strategic Bitcoin Reserve and Digital Asset Stockpile.
• SEC Ends Crypto Crackdown: New SEC regime immediately repeals Biden- and Gensler-era enforcement actions, lawsuits, and guidance.
• Rule Change Primes Bitcoin Buying Opportunity: Financial Accounting Standards Board changes accounting rules, simplifying corporate reporting for digital assets like bitcoin.
• Banks Get Crypto Green Light: FDIC and SEC remove barriers for banks to custody digital assets.
• States Race for Bitcoin: Over 20 U.S. states jump into bitcoin legislation, igniting state-level bitcoin blitz.
• ByBit Suffers Record $1.5 Billion Hack: Crypto faces its largest hack ever as crypto exchange ByBit loses $1.5 billion.
• Meme Coin Meltdown: Meme coins implode, with TRUMP, MELANIA, and LIBRE tokens leading the carnage.
• Abu Dhabi’s Bitcoin Bet: Abu Dhabi’s sovereign wealth fund reveals $437 million bitcoin purchase.
• Corporate Bitcoin Trend Grows: Inspired by MicroStrategy, GameStop raises an eye-popping $1.5 billion to buy bitcoin.

Key Upcoming Catalysts

• Rising Global Money Supply: After years of tightening, central banks across the globe are signalling a shift towards monetary easing and M2 expansion. Historically, these conditions have been favorable for risk assets, particularly for digital assets. Economic uncertainty around the imposition of tariffs could accelerate this growth. With liquidity rising, crypto is primed for outperformance.
• The Tailwinds of Regulatory Relief: The past six months brought a clean sweep of pro-crypto regulations: the repeal of SAB 121, the dismissal of high-profile SEC lawsuits, the restoration of banking access, and a strategic bitcoin reserve. What comes next? Platform approvals will allow capital to flow, protocols are unleashed to deliver economic value and new services, and entrepreneurship and innovation can thrive in the U.S. This is the long tail of regulatory clarity that no one is talking about, and it’s just getting started.
• Stablecoin Summer: The U.S. Congress is expected to pass landmark stablecoin legislation by July, creating a clear and compliant path for stablecoins at scale. We expect to see multiple large financial institutions— banks, fintechs and payment platforms—rapidly launch and support stablecoins. Growing stablecoin adoption will benefit adjacent sectors, including DeFi and other crypto applications.
• (Digital) Gold Renaissance: Geopolitical chaos—trade wars, capital controls, and fiat devaluations—are pushing global investors to reassess their portfolios. In this environment, bitcoin (like gold) is being increasingly viewed as a potential hedge: liquid, scarce, and (most importantly) independent of tariffs, capital controls, and currency manipulation. Falling faith in institutions opens to the door for bitcoin as a global asset.