First quarter was ‘most successful failure’ in crypto market history — Bitwise

Despite unprecedented developments in the crypto industry in the first quarter of 2025, the crypto market finished it in the negative territory, according to a review published by crypto asset management company Bitwise on April 16. The company’s chief investment officer Matt Hougan called the first quarter “the best worst in crypto’s history.”

Following the victory of crypto-friendly US President Donald Trump, the launch of a national bitcoin reserve and the withdrawal of several SEC lawsuits, the industry was expecting a significant growth. Yet, the total crypto market capitalization has fallen by $650 billion and is now nearly 30% below its January highs.

Nevertheless, Bitwise analysts advise focusing on fundamental trends. Stablecoins under management reached an all-time high of $218 billion, with their market share exceeding 8.6%. Tokenized real assets were up 37% over the quarter. Derivatives trading and open interest in BTC also posted significant growth, which indicates sustained institutional interest.

Bitwise believes the major drivers for a market recovery could be the expected monetary easing, as well as DeFi and stablecoin legislation in the US.