Research Study
Q1 2025 Signals Report
A quarterly breakdown of key market metrics that could be affecting price and investor sentiment
April 28, 2025 • 60 min read
Executive Summary
Following a strong finish to 2024, digital assets faced a more complex landscape in the first months of 2025. However, the long-term outlook appears positive for bitcoin and ether amid short-term uncertainty across the market.
In our Q1 2025 Signals Report, our Research team breaks down both assets’ performance and analyzes the factors that could shape the digital asset market in the months ahead. Key takeaways from the report include:
- Most on-chain metrics and long-term fundamentals remain strong despite recent volatility.
- Price drawdowns are not uncommon—especially in bitcoin’s history. A 20% decline could be viewed as relatively mild compared to previous corrections, which have gone as deep as 80% or more.
- A unique combination of extrinsic tailwinds and headwinds are at play, including the creation of the U.S. Strategic Bitcoin Reserve, growing institutional adoption, and uncertainty around tariffs.
Access the full report to see how we are interpreting current market signals—and what they could mean for digital assets as we move further into 2025.
The information herein was prepared by Fidelity Digital Assets, National Association (“FDA, NA”) and Fidelity Digital Assets, Ltd (“FDA, LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment. Digital assets are not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency, and are not obligations of any bank.
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