Bitcoin (BTC-USD) is heading toward its weakest first-quarter result since 2020, when the onset of the COVID-19 pandemic triggered a global market downturn. With just one trading week left in March, the cryptocurrency is down 10% for the quarter, officially entering correction territory.
Ethereum (ETH-USD), the second-largest cryptocurrency by market value, has also struggled. Its performance this quarter is on track to be the worst since its launch in 2015.
The pullback in both digital assets reflects broader risk aversion among investors amid market volatility. Ongoing concerns over a potential U.S. recession and shifting trade policies under President Donald Trump have weighed on sentiment across equities and crypto markets alike.
Analysts anticipate heightened price swings as portfolio managers rebalance ahead of Q2. Disappointment has also grown among crypto investors regarding the administration’s approach to digital assets. Despite early optimism, there has been little movement on proposed initiatives such as a Bitcoin reserve strategy or tax-free treatment of crypto capital gains.
As of Friday evening, Bitcoin was trading at $84,905 roughly 25% below its January 20 peak of just over $109,000, reached on the day of Trump’s inauguration.
This article first appeared on GuruFocus.
