Bitcoin Market Outlook: Short-Term Volatility Expected Before Stabilization and Growth

Coinbase’s latest Monthly Outlook for April 2025 suggests that the cryptocurrency market, including Bitcoin, may experience volatility or downward pressure in the coming 4-6 weeks. However, the report anticipates stabilization by mid-to-late Q2 (May to June 2025), setting the stage for potential growth in Q3 (July to September). This period could present significant opportunities for investors as the market finds its footing and begins to trend upward.

Coinbase Predicts Stability in Q2 and Growth in Q3 for Crypto Market

According to Coinbase, the crypto market may face volatility or downward pressure in the next 4-6 weeks. The Coinbase Monthly Outlook for April 2025 provides a roadmap for the crypto market, expecting short-term volatility but predicting prices may stabilize in mid-to-late Q2 (May to June 2025), laying a foundation for growth in Q3 (July to September). This period is expected to offer significant opportunities for investors. Similarly, a QCP Capital report predicts a potential bullish Q2 for crypto, drawing from TradFi market trends. However, from April to mid-May, Coinbase anticipates negative market volatility.

US Exchanges Regaining Bitcoin Volume Dominance

On-chain data shows a reversal in Bitcoin volume dominance for US-based exchanges compared to off-shore platforms. The ’US vs. Off-Shore Ratio’ metric, which tracks the ratio between Bitcoin volume on American and foreign platforms, is currently rising. When this metric is above 1, it indicates US-based exchanges dominate in volume. CryptoQuant author Axel Adler Jr. pointed out this trend in a recent post.

Crypto Market Rests After Recovery

Over the past seven days, the cryptocurrency market fluctuated, initially falling to $2.5 trillion before rising to $2.71 trillion and later correcting to the $2.65 trillion area. The market has failed to overcome the descending resistance line formed from the US Presidential Inauguration Day peak. The sentiment index is moving out of the ’extreme fear’ zone and consolidating in the ’fear’ area, suggesting that the correction may be over, but catalysts for a full-fledged rally are lacking. Bitcoin trades within $83K–$86K, hovering around the 50-day moving average but struggling to break above the 200-day.

Quantum Computing Group Offers 1 BTC for Breaking Bitcoin’s Cryptographic Key

Project Eleven, a quantum computing research firm, has launched the Q-Day Prize, offering 1 bitcoin (BTC) to the first team that can break an elliptic curve cryptographic (ECC) key using a quantum computer. The competition highlights the potential threat quantum computing poses to Bitcoin’s security, with over 10 million addresses potentially at risk. Solutions like the Quantum-Resistant Address Migration Protocol and Coarse-Grained Boson Sampling have been proposed, but both require a hard fork.

Bitcoin Price Prediction 2025-2031

Bitcoin price faces high volatility below $86K. Our prediction expects BTC’s price to reach $160K by the end of 2025 due to the bullish sentiment following the halving event. By 2031, BTC might touch $350,548 following increased institutional adoption. Since the beginning of 2024, Bitcoin’s price has doubled, with a notable 45% increase in just two weeks following the presidential election.

Whales Withdraw Large Amount of BTC from Babylon Labs

Whales withdrew 14,929 BTC from Babylon Labs just as it launched its Genesis L1 chain. The protocol had previously held over 57K BTC for staking and point farming. The BTC was unstaked and withdrawn to four anonymous addresses, with the largest holding $1.1B in BTC. Since the withdrawals, the BTC has remained in these new anonymous addresses. Potentially, the withdrawals could be sent back to the original depositors. As a result, Babylon’s smart contract is now secured by just 31,701 BTC, lowering the TVL of the protocol down to $2.76B.