2025 Crypto Assets Market Review and Outlook

In 2025, the Crypto Assets market experienced significant volatility. At the beginning of the year, a favorable political stance drove prices up, but after Trump's inauguration, the market corrected. Both Bitcoin and the S&P 500 Index fell by 15-20%, while small-cap stocks and high-growth assets suffered even greater declines.

The market correction primarily stems from macro factors and issues unique to Crypto Assets. Tariff policies have raised concerns about slowing economic growth and rising inflation, while the establishment of the government efficiency department (DOGE) has increased uncertainty. AI-related stocks and tokens have faced sell-offs, the Meme coin bubble has burst, and a major trading platform being hacked has also undermined market confidence.

In the first quarter, most token prices fell by more than 50%. However, tokens with solid fundamentals performed relatively well. Similar pullbacks have not been uncommon in history and are often accompanied by strong rebounds.

Multiple market sentiment indicators show that pessimism has reached extreme levels, suggesting that the worst phase of the sell-off may be over. At the same time, the favorable interest rate and liquidity environment is beneficial for risk assets. Major global economies are increasing liquidity, which typically drives up assets such as Bitcoin.

Recent macro events may evolve into a crisis of trust in the dollar, highlighting Bitcoin's appeal as a non-sovereign store of value. Since April, digital assets have outperformed stocks and the dollar, potentially leading the way in a rebound.

In terms of industry development, the White House's appointment of the "Crypto Assets Tsar" and the establishment of a strategic Bitcoin reserve are positive policy changes that have been overlooked by the market. Blockchain companies are generating considerable revenue, user activity is at an all-time high, the transfer volume of stablecoins has surged, and innovation in key areas continues.

Overall, despite the challenges, sentiment indicators suggest that the worst may be over. As the volatility caused by tariffs subsides, investors are likely to refocus on long-term positive factors and strong fundamentals. As a leading growth asset, Crypto Assets may be the first to rebound and lead the rally.