Source: Cointelegraph Original: "{title}"
The election of U.S. President Donald Trump was supposed to usher in a golden age for cryptocurrency. Despite the continuous positive news on regulation, the cryptocurrency industry has just experienced its worst quarter in years.
Bitcoin (BTC) and Ether (ETH) recorded their worst first quarter in seven years, market sentiment fell to its lowest point since the last bear market, and Coinbase stock experienced its most severe sell-off since the FTX incident.
The first quarter has finally passed, and investors are looking forward to positive catalysts for Bitcoin and the entire market. These catalysts could take the form of favorable seasonal factors in spring, further clarity on Trump's tariff policies, and a shift in the Federal Reserve's policy direction.
Coinbase stock, long seen as an important barometer for the cryptocurrency industry, plummeted 33% in the first quarter despite reporting strong business fundamentals and a robust revenue outlook. According to Cointelegraph, this is the most severe quarterly decline since the collapse of the FTX exchange at the end of 2022.
Like other native cryptocurrency enterprises, Coinbase's performance has been sluggish under the pressures of Trump's tariff war, price volatility of digital assets, and tightening financial conditions in the previous quarter.
However, aside from these short-term adverse factors, Coinbase's business is thriving. In 2024, the company's revenue more than doubled to $6.6 billion. Adjusted earnings rose to $3.3 billion, achieving growth for two consecutive years.
COIN stock’s volatile year so far. Source: Google Finance
Despite the fear and volatility surrounding the cryptocurrency market, Donald Trump's family is doubling down on long-term investments in the industry.
On March 31, Trump's two sons, Eric and Donald Jr., announced that they are backing a new cryptocurrency mining company called American Bitcoin. Hut 8 is a publicly traded cryptocurrency miner that holds a majority stake in the enterprise.
The announcement stated that American Bitcoin's "goal is to become the world's largest and most efficient pure Bitcoin miner while building a strong strategic reserve of Bitcoin."
Although cryptocurrency prices are falling, with such significant investments from the Trump family, it is becoming increasingly difficult for investors to remain bearish on the industry. The family is behind the DeFi project World Liberty Financial, which has accumulated a large digital asset portfolio, including Ether, Wrapped Bitcoin (WBTC), Aave (AAVE), and Chainlink (LINK).
Stablecoin issuer Tether acquired 8,888 Bitcoins in the first quarter, thereby strengthening its balance sheet. The company currently holds 100,521 BTC, worth approximately $8.7 billion.
Tether's ability to acquire Bitcoin and expand its venture capital business is largely due to its lucrative stablecoin operations. Last year, the company generated $13 billion in profits from its substantial holdings of interest-bearing U.S. Treasury bonds.
Despite its success, Tether has been the subject of negative media coverage, industry scrutiny, and political criticism. A recent report from JPMorgan suggested that Tether would be forced to sell some of its Bitcoin holdings to comply with upcoming U.S. stablecoin regulations.
A company spokesperson poured cold water on this conclusion, telling Cointelegraph that JPMorgan "understands neither Bitcoin nor Tether."
Video game retailer GameStop is preparing to incorporate Bitcoin into its balance sheet after completing a $1.5 billion convertible bond issuance.
"GameStop stated: "The company expects to use the net proceeds from this issuance for general corporate purposes, including acquiring Bitcoin in a manner consistent with the company's investment policy."
GameStop's board approved a plan to invest in Bitcoin last month. This approval also greenlit the company's acquisition of dollar-denominated stablecoins.
In addition to borrowing to acquire Bitcoin, GameStop has also hinted at the possibility of using a portion of its $4.8 billion cash reserves to fund future acquisitions.
GameStop shares have experienced extreme volatility since March 26, when the company first disclosed its plan to acquire BTC. Source: Google Finance
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