Bitcoin News: BTC Faces Worst Q1 Since 2018 Amid Tariff Turmoil

The Bitcoin (BTC) market has shown its worst quarter since 2018 during the initial period of 2025. The cryptocurrency BTC experienced a notable drop after a successful beginning of the year, which alarmed market participants about its economic stability and market trajectory. The decline was mainly attributed to both macroeconomic components and the tariff implementation plan on “Liberation Day”, which came from the administration of President Donald Trump. Bitcoin struggles to preserve its earlier upward trends following growing inflation fears and slower economic expansion rates. 

Bitcoin’s Q1 Struggles: The Worst Performance in Seven Years

Bitcoin embarked on 2025 with optimistic projections, as sellers held their positions between the $100,000 region. Bitcoin experienced a rough three-month start to the year because its value fell to $81,500 by March 31. The decrease exceeded 12% in the first quarter, representing the worst Q1 performance since 2018. Bitcoin showed significant market movement during this timeframe as it failed to establish continual price improvements.

Image 1- Bitcoin Quarterly Returns, published on CoinGlass, March 31, 2025.

During 2025’s Q1, Bitcoin experienced a different market atmosphere compared to the successful performance in 2024 that saw a 68% surge. This sudden market value decline produces doubts about Bitcoin’s capacity to function as a valuable commodity during broader market crises. The recent price drops forced Bitcoin to breach below its defense of vital support levels, which has generated significant marketplace discussion. The period witnessed traditional gold assets increase in value, deepening the debate on Bitcoin’s position as a safe-haven asset. The digital gold status of Bitcoin currently faces doubt from market analysts such as Peter Schiff, as well as investors.

The Bitcoin’s Q1 struggles challenges its viability in economic downturns because it fails to contend with strong traditional asset metrics. Because of unstable economic trends, Bitcoin’s successful navigation of unpredictable global economic climates will determine its future direction.

The Impact of the “Liberation Day” Tariffs on Bitcoin

Bitcoin struggled gravely during Q1 2025 due to the market’s negative response to the “Liberation Day” tariff announcement. U.S. President Donald Trump is set to implement broad tariff policies to increase domestic manufacturing on April 2. The original purpose of these protectionist measures was to manage American industries. Yet, their application led the market to fear increased prices, disrupted worldwide trading relationships, and reduced economic expansion patterns. The market-wide risk-cautious attitude has pushed investors to abandon riskier asset classes, which include Bitcoin cryptocurrency.

Image 2- Provided by Kobeissi Letter, published on X, March 31, 2025.

The economic volatility from these tariffs has caused a market-wide wave that has particularly hurt the Bitcoin cryptocurrency. The cryptocurrency experienced a price drop under $82,000 when market participants anticipated how economic instability from applied tariffs would affect the market. The current economic uncertainties result in Bitcoin’s inability to fulfill its potential status as an anti-inflationary asset despite investors viewing it as such. The investment community has shifted its funds toward safe assets, including gold, as it demonstrates exceptional strength during this time period.

The market adopts a conservative attitude toward Bitcoin as investors reconsider their investment techniques because of combined tariff policies and inflation risks. These newly imposed tariffs have made the cryptocurrency market more risky due to the potential bear market.

The Future Outlook for Bitcoin Recovery from Q1 Declines

The market watches Bitcoin closely to see its future reaction to the stresses caused by the tariff implementation, which began in Q2 2025. Bitcoin experienced an arduous Q1 period, yet analysts anticipate that the cryptocurrency will bounce back. The extent of future Bitcoin optimism depends on two main economic elements: national financial patterns and the duration of “Liberation Day” tariff policies. Bitcoin can regain its position by easing tariffs and reducing inflation fears, potentially creating a market rally.

The Bitcoin market has proven itself resilient even during its periods of decline. Regular market price corrections in cryptocurrencies are common indicators of future major increases. The Bitcoin price recovery heavily depends on the support levels near $80,000, determining if BTC recaptures its value or continues to decline. Bitcoin’s future performance depends on investor confidence, ongoing international trade restrictions, and general financial market recovery patterns.

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