✅ 4 factors for cryptocurrency market growth in Q2 2025
"The past quarter has been disappointing," said Bitwise Chief Investment Officer Matt Hougan, calling Q1 "the best of the worst" in cryptocurrency market history.
However, in his opinion, the situation may change in Q2 thanks to:
1️⃣ Easing of monetary policy
Central banks around the world are moving towards lowering rates, which historically has been favorable for cryptocurrencies. The global M2 measure has already been holding at record levels for 3 days.
2️⃣ Regulatory clarity in the USA
Another positive factor will be the "widespread introduction of favorable regulations" in the USA. The expert notes a "long tail" of positive changes that are just beginning to affect the market.
3️⃣ Record growth of stablecoins
In Q1, the volume of assets under management in stablecoins grew to "an all-time high of over $218 million." This stimulates the development of DeFi and other crypto segments.
4️⃣ Geopolitics and the search for alternatives
"Geopolitical chaos" in the global economy in Q1, especially after the introduction of Trump's tariffs, "forces global investors to reassess their portfolios."