$BTC The cryptocurrency market, including Bitcoin, took a hit in the first quarter of 2025. Bitcoin's value dropped nearly 12% from its January 1 price of around $93,500 and over 30% from its peak on January 20, following Donald Trump's inauguration day ¹.

*Key Factors Contributing to the Downturn:*

- *Trade War Fears*: Ongoing trade tensions and tariff promises by President Trump weighed heavily on the market.

- *Diminished User Sentiment*: Declining net unrealized profit/loss (NUPL) indicates growing investor frustration, with unrealized losses outweighing gains by about 24%.

- *Slowdown in BTC Accumulation*: Larger entities reduced their Bitcoin accumulation, reflecting cautious sentiment throughout the quarter.

*Market Performance:*

- *Bitcoin Dominance*: Increased from 53.54% on January 1 to 62.8% by the end of Q1, as other altcoins took harder hits.

- *Stock Market Comparison*: S&P 500 and Nasdaq experienced significant declines, with 4.9% and 10.27% losses, respectively.

*Expert Insights:*

- *Ray Dalio's Warning*: Bridgewater Associates founder cautions that global markets are sleepwalking into a once-in-a-generation collapse driven by debt, division, and power shifts, rather than just tariff headlines.