The first quarter of 2025 revealed significant volatility in the crypto market, marked by a brief all-time high for Bitcoin at $109,356, followed by an 11.6% decline. Institutional investors played a critical role in this shift, favoring Bitcoin as they moved capital from altcoins, a trend reflected in Bitcoin's dominance increasing to 62.2%. While the CoinDesk 20 Index fell 23.2%, XRP was the only constituent with a positive return, attributed to news around Ripple. Ether, on the other hand, dropped 45.3% due to decreased user activity and substantial outflows from ETH ETFs. Public companies added nearly 100,000 BTC in Q1, underscoring Bitcoin's legitimacy and growing acceptance as a macro asset. Looking ahead, optimism for altcoin ETFs is rising with significant applications filed, suggesting a potential rebound amid improving macro conditions. Overall, the quarter highlighted a transformation where institutional dynamics are reshaping digital asset strategies.

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