Bitcoin drops 23% in Q1 amid bear market fears
Key Takeaways
Bitcoin lost momentum in the first quarter of 2025. The Bitcoin Bull Score Index (BBSI) dropped to its lowest level since January 2023. Analysts from CryptoQuant and Glassnode see signs of a prolonged bear market. Additionally, Coinbase warns of potential impacts from new US tariffs and corporate earnings reports in April.
Bitcoin Loses Momentum
Bitcoin (BTC) declined by 23% in the first quarter of 2025, dropping from $109,000 to $84,000. According to CryptoQuant analysts, this could indicate a prolonged bear market. The Bitcoin Bull Score Index (BBSI), which measures market strength, fell to 20 – the lowest level since January 2023.
The BBSI ranges from 0 to 100. High values indicate strong market sentiment, while low values suggest weakness. The current value of 20 corresponds to the weak market conditions of 2022 and early 2023.
On-Chain Data Shows Continued Weakness
In addition to low BBSI values, other on-chain indicators also show a negative trend. Since mid-February, almost all key metrics have been bearish. Only stablecoin liquidity remains stable.
Short-term Bitcoin holders (Short-Term Holders, STH), who have owned BTC for less than six months, are particularly affected. According to Glassnode, they recorded losses totaling $7 billion over the past 30 days. However, these losses remain within the historical ranges of previous Bitcoin bull markets.
Macroeconomic Risks Increase Uncertainty
Coinbase analysts take a more critical view of the current market situation. In addition to general uncertainty, geopolitical factors are also weighing on Bitcoin. In particular, new US tariffs, which could take effect in early April, may have a negative impact.
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According to Coinbase, two factors are crucial for further market development:
– The impact of new tariffs on global trade
– The quarterly earnings reports of major companies, which could influence investor sentiment
Our Assessment
The Bitcoin market is currently showing clear signs of weakness. The low BBSI value and the losses among short-term holders suggest a potential prolonged correction. At the same time, external factors such as new US tariffs and corporate earnings could put additional pressure on the market. Investors should closely monitor the coming weeks and adjust their strategy accordingly.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $85,048.00 |
| 24h % | 1.28 % |
| 7d % | 2.15 % |
| 30d % | -10.39 % |
| 60d % | -18.44 % |
| 1y % | 30.86 % |
| Market Cap | $1,687,503,492,721.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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