As we head towards the final trading week of March, Bitcoin (BTC) is on pace for its worst first-quarter performance since 2020 when the Covid-19 pandemic hit global markets.
So far in the first quarter, Bitcoin has declined 10%, putting it into a correction and marking its worst Q1 performance in five years. At the same time, Ethereum (ETH), the second largest cryptocurrency by market capitalization, has posted its weakest first-quarter performance since its inception in 2015.
The poor showings for both Bitcoin and Ethereum come as investors retreat from risk assets such as cryptocurrencies and stocks. Markets remain weak and volatile as U.S. President Donald Trump continues to push trade policies that include import tariffs, and as concerns rise about a U.S. recession.
Continued Volatility
Analysts say investors should expect increased volatility in crypto prices as we approach April 1 and traders look to rebalance their portfolios heading into the year’s second quarter. Weakness in crypto has also been exacerbated by investor disappointment over President Trump’s policies.
Many investors have been letdown by Trump’s lack of a concrete plans for a strategic Bitcoin reserve and a tax-free crypto capital gains policy. Bitcoin is currently trading at $84,000, down nearly 25% from an all-time high of just over $109,000 reached on Jan. 20, the day of Trump’s inauguration.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 11.23% in the last 12 weeks.
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