Over the past few years, trends in the traditional financial market have caused risky assets like cryptocurrencies to surge in the second quarter, especially in April. This can provide the necessary bullish narrative for this sector.
QCP Capital's report looked at several trends, such as the performance of the S&P 500, but Bitcoin's price history over the past decade is the most clear market indicator.
Will Cryptocurrencies Be Good in Q2 2025?
According to QCP Capital's new report, the cryptocurrency market may enter a bullish period in the second quarter of 2025. This is primarily derived from several sources related to the intertwined nature of cryptocurrencies and traditional financial markets.
However, this data is supported by broader cryptocurrency-specific trends.
"One of the fastest US stock declines in recent history may have already passed. JPMorgan and increasingly more strategists are telling their clients this. The second quarter, especially April, has historically been one of the best times for risk assets." – QCP, claimed via Telegram.
Considering how desperately the cryptocurrency market needed a bullish narrative, this second quarter speculation is like a breath of fresh air. QCP pointed out recurring trends in traditional financial sectors like the S&P 500, which are even more pronounced in cryptocurrencies.
For example, Bitcoin's price is an excellent indicator. Bitcoin is closely linked to the broader cryptocurrency market and has often risen in the second quarter, especially in April.
For instance, Bitcoin's price hovered near $1,000 in 2017 before breaking $2,000 in mid-May, triggering a larger surge. In 2021, a massive price surge peaked in April and briefly declined in May.
In 2024, the second quarter was crucial for cryptocurrencies. BTC quickly rose after the Bitcoin spot ETF was approved in January, breaking $60,000 in late February and early March, and reaching new all-time highs in April.
Simultaneously, the high-yield credit market showed robust performance, with CC-rated bonds outperforming. This demonstrates healthy demand for risk assets.
Additionally, with tariff concerns diminishing, risk asset performance is rising throughout 2025. We hope this retreat can continue to support the cryptocurrency market in the second quarter.
If these broad trends continue as before, the market could enter a positive cycle within the next few months.
