#MarketRebound The crypto market in 2025 has been a wild ride, with significant volatility but also signs of potential recovery. After a tough Q1, marked by Bitcoin’s worst first-quarter performance in seven years and a market cap drop of about $1 trillion from December 2024 highs, several sources point to a possible rebound.

Key drivers for a potential recovery include:

Institutional Adoption: Growing interest from traditional financial institutions, with Bitcoin ETF inflows rising 8% to $150 million on May 24, 2025, and banks like Bank of America expressing readiness to integrate crypto if regulations allow. Stablecoin market cap surged past $200 billion in Q1, outpacing Bitcoin’s price trajectory.

Regulatory Clarity: The U.S. is shifting toward a more crypto-friendly stance under the Trump administration, with proposed policies like eliminating capital gains taxes on U.S.-issued cryptocurrencies and the repeal of SEC’s SAB 121, which could ease custodial rules for institutions. Legislation like the GENIUS Act for stablecoins is also gaining traction, potentially stabilizing the market by August 2025.