Crypto News for 2025 Q1: Biggest Market Moves, Hacks, and Policy Shifts
Q1 2025 has been anything but quiet in the crypto world. From the U.S. making bullish regulatory moves to one of the biggest hacks in Ethereum history, the first three months of the year have already packed in enough drama to keep investors, traders, and crypto diehards on edge.
We’ve seen Bitcoin break past $87K, stablecoins go mainstream, meme coins surge off pop culture trends, and even presidential pardons tied to crypto crimes. Major players like MicroStrategy and GameStop doubled down on Bitcoin. Meanwhile, scandals like Argentina’s $LIBRA rug pull reminded everyone just how risky unregulated tokens can be.
In this Q1 crypto market update, we’re breaking down all the key events—from regulation and institutional moves to market trends and headline-making chaos. Whether you’re a serious investor or just trying to keep up, here’s everything you need to know to stay ahead in crypto for 2025.
US Turns Pro-Crypto: New Laws, Big Promises
The U.S. made some seriously bullish moves for crypto in Q1 2025.
First up—Trump. He came out strong, saying he wants the U.S. to be the “undisputed Bitcoin superpower.” At the Blockworks Digital Assets Summit, he called out the last administration’s anti-crypto stance and promised clear rules for stablecoins and market structures.
But it wasn’t just talk. On March 28, Trump pardoned the three BitMEX co-founders—Arthur Hayes, Benjamin Delo, and Samuel Reed—who were convicted in 2022 for not following anti-money laundering rules. That move made headlines. Some saw it as a reset for crypto regulation. Others thought it was a bit much and warned it could send the wrong message about accountability in the crypto space.
Still, it marks a clear shift in tone. Crypto is no longer being treated like a threat. It’s being seen as a strategic advantage—something that could grow the economy and help back the dollar with stablecoins.
The SEC is shifting too. In February, it started dropping major lawsuits against Coinbase, Robinhood, Uniswap, and even put Binance litigation on pause. That’s a big change from the enforcement-heavy approach of the last few years. The SEC now says it’s working on a full crypto framework, with actual input from the industry.
Trump’s nominee for SEC chair, Paul Atkins, wants to strike a balance: support crypto innovation but still protect investors. Meanwhile, the SEC’s Crypto Task Force is hosting public roundtables to figure out the right rules for things like trading and custody. That kind of openness? Pretty rare in crypto regulation.
And it’s not just the feds. States are jumping in too.
- Kentucky passed a law to protect Bitcoin self-custody and support mining.
- North Carolina wants to let public funds invest in crypto.
- Arizona is working on a Bitcoin reserve fund for state money.
Put it all together, and it’s clear: the U.S. is finally leaning in. For anyone following crypto news in 2025, this was one of the most bullish quarters we’ve seen in a long time.
Fidelity Wants In on Stablecoins
Fidelity is dipping its toes into stablecoins—and that’s a big deal.
The asset management giant is quietly testing a U.S. dollar-pegged stablecoin through its digital assets division. It’s not live yet, but the message is clear: traditional finance is getting more serious about crypto.
This move lines up with Fidelity’s push into blockchain. They recently filed to tokenize a U.S. money market fund, aiming to bring more efficiency and transparency to traditional finance using crypto tech. Think of it as wrapping an old-school fund in a blockchain layer.
Fidelity entering the stablecoin race puts them in the same league as Tether and Circle, who currently dominate the $239 billion stablecoin market. But unlike those crypto-native players, Fidelity brings Wall Street clout—and possibly more trust from institutions.
The timing makes sense too. Under Trump’s pro-crypto stance, the U.S. is actively backing regulated, dollar-backed stablecoins as a way to keep the dollar strong.
With firms like World Liberty Financial and the state of Wyoming also planning their own stablecoins, Q1 2025 is shaping up to be the quarter stablecoins went mainstream.
MicroStrategy Doubles Down on Bitcoin
MicroStrategy just hit a massive milestone—over 500,000 bitcoins on the books.
Between March 17 and 23, the company added another 6,911 BTC for about $584 million, funded through stock sales. That brings its total holdings to more than $44 billion, with an average buy price of $66,384 per coin. CEO Phong Le is clearly sticking to the playbook: go all-in on Bitcoin as a core part of the treasury strategy. At this point, MicroStrategy isn’t just a tech company—it’s basically a Bitcoin fund in disguise.
Meanwhile, GameStop is trying to play catch-up. It announced plans to raise $1.3 billion by issuing 0% convertible notes due in 2030. The money? Part of it will go toward buying Bitcoin. The board has officially approved Bitcoin as a treasury reserve asset—a big move for a company better known for meme stock status than financial innovation.
But Wall Street didn’t love it. GameStop’s stock dropped over 15% after the news. Investors seem unsure if now’s the time for risky bets, especially from a retailer still trying to reinvent itself.
At the same time, Strive Asset Management is trying something new. In December 2024, it filed with the SEC to launch a Bitcoin Bond ETF. The fund would invest at least 80% of its exposure in Bitcoin-related bonds—mostly from companies like MicroStrategy that are raising money to buy Bitcoin. The ETF is still awaiting approval, but it’s another sign that Bitcoin is finding its way deeper into traditional finance.
Altogether, it’s clear that crypto is becoming a serious treasury strategy—but not everyone’s convinced it’s a safe one.
Bybit Hack: $1.5B Gone in a Flash
If you’re even slightly plugged into crypto news in 2025, you’ve heard about the Bybit hack—and yeah, it was massive.
In February, hackers made off with about $1.5 billion in Ethereum, making it one of the biggest crypto hacks in history. The attackers snuck malicious code into a developer tool that Bybit uses. When employees thought they were moving funds securely, they were actually sending them straight into the hands of hackers.
The stolen ETH was quickly split up, swapped into other coins, and scattered across thousands of wallets. Most of it hasn’t moved since—probably waiting for the dust to settle.
The FBI later confirmed that North Korean state-backed hackers, tied to the “TraderTraitor” operation, were behind the attack. They converted the stolen crypto into Bitcoin, spread it across multiple blockchains, and are expected to launder it into fiat over time.
In response, Bybit teamed up with law enforcement and blockchain analytics firms, like Chainalysis. They launched a bounty program, offering up to 10% of the recovered funds to anyone who helps track it down.
Thanks to the T3 Financial Crime Unit (a joint effort by TRON, Tether, and TRM Labs)—around $9 million has already been frozen. T3FCU has been cracking down hard, with $36M frozen from scams and another $65M from laundering operations to date.
The market didn’t take the news well. Bitcoin fell over 5% following the hack, hitting its lowest price since November 2024. The hack, combined with fears of U.S. tariffs and regulatory uncertainty, shook investor confidence.
This incident is yet another reminder: crypto’s growing up fast, but security holes still cost billions.
$LIBRA Crash: Milei’s Crypto Endorsement Backfires
In February 2025, Argentina’s crypto scene exploded—and imploded—within hours.
President Javier Milei publicly backed a new cryptocurrency called $LIBRA, calling it a private initiative that could help kickstart Argentina’s struggling economy. The token, launched by Kelsier Ventures as part of the “Viva La Libertad” project, saw its price skyrocket almost instantly after Milei’s endorsement hit social media.
But the hype didn’t last. Within hours, $LIBRA crashed hard, wiping out millions in investor funds. Turns out, a big chunk of the token supply was held by insiders who dumped their coins at the top—classic rug pull. The fallout? Massive.
Over 100 criminal complaints were filed against Milei, accusing him of fraud. Opposition leaders even tried to launch impeachment proceedings, though so far, they’ve stalled. Public trust took a hit too—polls show 58% of Argentinians lost confidence in Milei after the fiasco.
The damage went global. International law firms have filed class-action lawsuits on behalf of foreign investors, accusing the token’s creators and promoters of deceptive practices.
The $LIBRA collapse is a harsh reminder of the risks that come with unregulated crypto assets. Argentina has since started rolling out new regulations aimed at protecting investors. But the scandal left a mark—and made it clear that crypto hype without transparency is a dangerous mix.
Other Crypto News Highlights – Q1 2025
Studio Ghibli Meme Coins Take Off
Thanks to OpenAI’s new image generation tool that mimics Studio Ghibli-style art, the crypto crowd did what it does best—made meme coins. Tokens like “Ghibli Doge,” “NoFace,” and “Yutaro” popped up, riding the wave of viral culture. One token, “GHIBLI” on Solana, even rallied 46,000% shortly after launch. Most of these coins haven’t gained real traction yet, but it shows how quickly crypto reacts to internet trends.
European Banks Falling Behind on Crypto
A Bitpanda survey revealed that fewer than 20% of European banks offer crypto services, despite the fact that over 40% of business investors already hold crypto, and another 18% plan to invest soon. This disconnect could cost banks big if they don’t catch up, with crypto-native platforms ready to take that market share.
BlackRock Wants ETH Staking in ETFs
BlackRock’s ETH ETF has done well, but Robbie Mitchnick, head of digital assets, says it’s missing something crucial: staking. He called it key to maximizing returns and hinted the firm is working to include it, though regulatory and technical hurdles remain.
France Bets on Homegrown Crypto
Bpifrance, the state-owned investment bank, is launching a €25 million crypto fund to directly invest in French token projects before they hit exchanges. The move aims to keep local innovation in Europe as crypto competition heats up globally.
- Crypto Market Snapshot (March 27, 2025)
- Bitcoin (BTC): $87,046
- Ethereum (ETH): $2,004
- BNB: $638.53
- XRP: $2.33
- Dogecoin (DOGE): $0.189
The market’s mostly stable since January, with minor price movements across the board.