Bitcoin is on course for its worst first-quarter close since 2020, with a decline of over 7%. Despite this, many analysts predict that the second quarter could bring a rebound for the cryptocurrency. Bitcoin hit an all-time high of $108,786 in January 2025, spurred by optimism following President Trump’s return to office. However, the market quickly turned negative after Trump’s economic tariffs led to a sharp drop in Bitcoin’s value, falling as low as $76,700 on some exchanges.

Analysts believe that the volatility could subside soon, as many of the bearish factors may already be priced in. Sina G., co-founder of 21st Capital, stated that market uncertainty around tariffs and government spending could be resolved in the coming weeks, and focus could shift toward tax cuts, deregulation, and rate cuts, which might bring more capital into Bitcoin and digital assets. Aurelie Barthere, Principal Research Analyst at Nansen, also suggested that the tariff-related uncertainty may be easing, as the U.S. administration, particularly Treasury Secretary Bessent, has taken a more pragmatic approach to tariff negotiations.

However, the announcement of reciprocal tariffs between the U.S. and the Eurozone on April 2 could lead to more volatility. Barthere anticipates that the market could experience price swings after the tariffs are negotiated. Still, with Bitcoin’s historical performance in Q2 showing an average increase of 27% over the last 13 years, there is hope that a recovery could take place in the upcoming quarter. Bitcoin has posted gains in at least seven of the last 13 years during Q2.

Stablecoin regulations could also help boost market sentiment. Bo Hines, Executive Director of the Presidential Working Group on Digital Assets, mentioned at the Digital Asset Summit 2025 that stablecoin regulations could be on President Trump’s desk by the end of June. This could lead to improved market liquidity, potentially contributing to a significant Bitcoin price increase, with Standard Chartered predicting a $500,000 price target.

Meanwhile, meme coins are seeing a resurgence, driven by the launch of Morning Routine (ROUTINE), inspired by a viral video of fitness influencer Ashton Hall. The coin’s market cap skyrocketed to $19 million within two days of its release. The viral video, which garnered over 667 million views on X (formerly Twitter), featured Hall’s morning routine, including an ice water facial. Other meme coins, such as Fartcoin (FARTCOIN) and SPX6900 (SPX), also experienced significant recoveries. Despite this, some meme coins like Unicorn Fart Dust (UFD) and Toshi (TOSHI) saw declines.

With regulatory developments and the broader economic environment affecting market sentiment, analysts are closely watching how these factors will influence the direction of Bitcoin and other digital assets.