If you read crypto journals and articles in December 2024, you’d agree that experts predicted that cryptocurrencies would hit new all-time highs (ATH) in early 2025. Most speculated that with Donald Trump’s inauguration and crypto-friendly policies, we would rake in loads of money on our investments. Some influencers on X (formerly Twitter) predicted that cryptocurrencies would hit medium-term peaks in Q1 of 2025. 

Besides these “self-acclaimed experts” on X, crypto news blogs also preached the bull run gospel, and tons of renowned journalists predicted new ATHs in Q1 of 2025. 

Significant Price Falls Across the Crypto Market 

The cryptocurrency market is unpredictable and every once in a while, it reminds us of this. We're in the last month of Q1 of 2025, and we've seen nothing but red candles across charts. 

Look at the statistics: 

While President Trump's executive order to create a United States cryptocurrency reserve looked like it would be the turning point for the market, it did not. According to the report, the order was to strategically reverse cryptocurrencies already owned by the government and did not necessarily mean buying new tokens, as most enthusiasts thought. The news, however, did take Bitcoin to $89k in just a few hours, unfortunately, not for long. The premier coin is back to $83k (at the time of writing). 

What is Holding Back the Bull Run? 

At this point, we may as well ask the question; what is holding the predicted bull run? Why are all our crypto investments down? Let's try to answer that. 

Big Investors Exiting the Market 

Most investors, the big guys that own millions of dollars worth of cryptocurrencies, are de-risking. 

According to CoinShares, the digital asset or crypto market witnessed the fourth of a series of consecutive cash outflows this past week. A whopping $876 million was ejected from the market, bringing the overall total in the last four weeks to $4.75 billion. Bitcoin was the primary focus of this outflow, with $756 million removed from the premier coin's total value. The report revealed that US investors made up a larger percentage of those making the outflow. For the first time since November 2024, the total asset management has dropped by $39 billion. 

Source: CoinShares. 

What do you think is responsible for this exit from the market? 

President Trump's “A Period of Transition” Comments 

President Trump's victory in November 2024 and inauguration in January 2025 was a beam of hope for crypto enthusiasts. His pro-crypto policies will kick-start the bull run, said most experts and influencers. Well, that hasn't happened yet. Instead, we have witnessed multiple price drops, a resultant effect of his comments since his return to the Oval Office. 

There is great uncertainty in the US. The recent tariffs imposed on Canada, China, and Mexico are fanning the flames of an imminent trade war between them and the United States. A recent post from the Chinese Embassy on X stating that they are ready for “any type of war” sent shockwaves throughout the country, spurring most investors to initiate these outrageous cash outflows. President Trump's “period of transition” and “short-term pain” comments when asked about recession sparked the possibility that the nation could well be on the way there. 

The crypto market which was well expected to take off after President Trump's inauguration is currently grappling with the undeniable reality that his plans on the economy and relations with other countries may not particularly bode well for the industry. Could this be why we've seen these consecutive cash outflows in the last month? Most likely! 

Panic Selling

Amidst all of the hovering uncertainties, imminent recession, talks of war, and President Trump's executive orders, panic selling from regular investors also play a huge part in holding the bull run. Most are either outrightly selling their assets or converting them to stablecoins. 

Is There Hope for the Crypto Market? 

The crypto market has experienced worse price falls since Bitcoin's launch over a decade ago. The infamous 2018 crash saw the market record a whopping 80% fall in value from its peak, with Bitcoin dropping below the $4k mark. The BitConnet scandal and the numerous ICO scams were the main reasons for this fall. Since then, the market has picked up and continued to grow beyond expectations. 

While these factors and the new reality may be holding the bull run, there is still hope for the cryptocurrency market.