As tariffs near, Bitcoin nears $85K; DOGE, XRP, and ADA lead the crypto majors.​

Bitcoin Faces Steep Loss in Q1, Tariff Anxiety and Market Sentiment Shift Weigh on Crypto

Bitcoin’s performance for the first quarter of 2025 ended with a significant 11% loss, marking the biggest quarterly drop for the cryptocurrency since last year. The market remains cautious as U.S. tariffs are set to go into effect on April 2, further adding to the uncertainty.

On Tuesday, during European trading hours, Bitcoin (BTC) hovered close to the $85,000 mark as traders braced for the impact of the upcoming tariffs. Meanwhile, other major cryptocurrencies such as Dogecoin (DOGE) and Cardano (ADA) gained over 7%, leading a modest rebound across the market. Ethereum (ETH), XRP, Solana’s SOL, and BNB Chain’s BNB followed suit, posting gains of nearly 5%.

Despite these positive movements, the overall market capitalization dropped by 3%, according to CoinGecko data. The CoinDesk 20 index, which tracks major cryptocurrencies, saw a slight 3% uptick in the last 24 hours. This comes amid a broader sense of risk aversion, as U.S. equities took a hit — the S&P 500 dropped 3% last week, its steepest loss since September 2023. Meanwhile, gold saw an uptick, reaching new highs as investors flocked to safe-haven assets.

The looming tariffs, along with a flood of U.S. economic and labor reports from the past month, have contributed to a bearish sentiment in the market. Augustine Fan, head of insights at SignalPlus, pointed out that a lack of new catalysts, such as large ETF inflows, has left the market in a low-conviction state heading into the end of the quarter. This uncertainty helped fuel Bitcoin’s 11% loss for Q1, alongside the S&P 500’s decline.

Futures data from the CME indicates that speculative positions on Bitcoin are at their most bearish in recent years, shifting dramatically from the bullish momentum observed in January. Fan explained that while positioning data offers insights into market conditions, it does not directly predict future movements. However, the current bearish sentiment may result in a sharp reversal if the market turns bullish.

On a brighter note, long-term Bitcoin holders are showing resilience. Glassnode’s data suggests that investors holding 3-6 month positions are realizing profits, and these positions are trading at their lowest levels since June 2021, signaling confidence rather than panic selling. Newer Bitcoin whales — large investors who have entered the market in recent months — are also holding steady, providing additional stability to Bitcoin’s price floor.

Jupiter Zheng, a partner at HashKey Capital’s Liquid Fund and Research, commented that while the near-term risks stemming from the tariffs and economic reports are weighing on the market, he remains optimistic about the long-term outlook. He pointed to the growing institutional interest in crypto and the positive moves by regulators worldwide to foster greater adoption, despite the current risk-off sentiment.

In summary, while Bitcoin and the broader crypto market face challenges due to economic uncertainty and tariff concerns, there remains a strong foundation of long-term growth driven by institutional involvement and favorable regulatory policies.