Institutional
cryptocurrency trading volumes surged 141% year-over-year (YoY) in the first
quarter of 2025, according to data released today (Thursday) by Finery
Markets, reflecting the market’s response to the first 100 days of a new
pro-crypto political environment in the United States.
Institutional Crypto
Trading Jumps 141% in First 100 Days of Pro-Crypto Policy
The report,
which analyzed over 2 million spot trades conducted by institutions through the
Finery Markets platform, shows that January saw the strongest performance with
163.5% YoY growth, coinciding with Bitcoin reaching an all-time high above
$109,000.
“The crypto
OTC market continued its strong growth trajectory in Q1 2025,” Finery Markets
commented in the newest report. “January showed the strongest performance with
163.5% YoY growth, coinciding with BTC’s strong performance. February followed
with 137% YoY increase, while March showed 129% YoY increase.”
This week, Finery
partnered with Zodia Markets to enhance institutional access to both
digital asset and fiat liquidity. Both companies expect the over-the-counter
crypto markets to grow by more than 60% in 2025.
The most
significant growth was observed in crypto-to-stablecoin transactions, which
increased fivefold compared to Q1 2024.
Stablecoins on the Rise
The
stablecoin sector emerged as the quarter’s most resilient segment, with total
market capitalization exceeding $230 billion—56% larger than a year ago. Since
January alone, stablecoin market cap grew by approximately $20 billion.
“The
differential between transaction types suggests a clear institutional
preference for stablecoins, likely driven by their enhanced utility in bridging
traditional finance and the crypto space,” the report noted.
Regulatory
developments also reshaped the stablecoin landscape. The implementation of the
European Union’s Markets in Crypto-Assets (MiCA) regulation triggered USDT
delistings across major EU venues, creating an opening for USDC, which
experienced extraordinary growth of 32 times year-over-year.
Despite the
growth in altcoin trading, Bitcoin, Ethereum, and stablecoins continue to
dominate institutional portfolios, collectively representing 95.3% of all
transactions. The top five altcoins—SOL, LTC, XRP, TRX, and ADA—accounted for
just 4.7% of all trades.
Bitcoin Retreats From
$109,000 Peak as Q1 Euphoria Fades
By the end
of the quarter, market reality had tempered the initial euphoria. A
tariff war brought uncertainty and triggered a major sell-off in global markets,
which affected digital assets as well. Bitcoin prices retreated below $75,000
in March, returning to pre-election levels.
Over the
first quarter, Bitcoin’s price fell by 25% from its all-time high, with the
decline deepening at the start of Q2. However, Donald Trump’s proposed tariffs
are fueling significant volatility. For example, on Wednesday, Bitcoin traded
as low as $74,500 before closing the session at $82,600—ending
the day with a gain of over 8%.
And
although, as FinanceMagnates.com reported last month, Bitcoin
is experiencing its sharpest price decline since 2022, Finery Markets
reported a record trading volume of $1.8 billion.
The data
suggests that while the pro-crypto political shift has catalyzed market growth,
actual performance has been tempered by broader economic factors and the
complex reality of regulatory implementation.
This article was written by Damian Chmiel at www.financemagnates.com.
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