Bitcoin Struggles in Q1: Will Accumulation Signal a Comeback?

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Bitcoin’s start to 2025 has been rough, marking its worst first quarter in seven years.

The cryptocurrency saw its value drop by about 11.82%, falling from $106,000 in late 2024 to around $80,200 by the end of March. This downturn, attributed to economic challenges and new tariff policies from U.S. President Donald Trump, contrasts sharply with the 68% surge in the same period last year.

Despite the slump, some large investors are doubling down. Data from Santiment shows an increase in whale addresses holding between 1,000 and 10,000 BTC, reaching the highest level since December 2024.

This suggests growing confidence among major holders. At the same time, trading activity among short-term BTC holders has hit a low not seen since mid-2021, indicating that recent buyers are holding rather than selling.

Additionally, Bitcoin’s supply on exchanges has dropped to 7.53%, the lowest since February 2018, signaling that investors may be opting for long-term holding.

Analyst Axel Adler Jr. predicts a consolidation phase over the next couple of months, suggesting that selling pressure has eased.

Fidelity Research also sees potential for a rebound, suggesting that Bitcoin may be entering a phase of renewed momentum, driven by institutional adoption and its role as an inflation hedge. As whales continue accumulating and exchange supply decreases, some experts believe the groundwork is being laid for a recovery.

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With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.
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