Fidelity Crypto’s latest report, released on April 28, offers a deep dive into the performances of Bitcoin and Ethereum in Q1 2025, along with insights for Q2.

Bitcoin Stays Resilient Even with Price Decline  

Bitcoin’s value was approximately $82,560 at the end of Q1 and is slightly dipping below its all time high of 108,000 marked in December 2024. Regardless of staying below the all time high, Fidelity points out that the network fundamentals of Bitcoin are still strong. Growth in long term holders, decreasing exchange balances, and increasing illiquid supply signal better bullish sentiment from on-chain metrics supports growing confidence among investors.  

Technically Bitcoin is undergoing the impact of the golden cross which was formed earlier in the year 2024. Bitcoin did manage to cross below its 200-day moving average which many traders see as a bearish zone, but important valuation indicators like MVRV Z- Score and Reserve Risk do remain neutral to positive. This suggests that Bitcoin hsa the potential for long term appreciation.  

The mining industry has remained strong post halving. Net revenue growth was often above the one year average along with healthy signals given from the Puell multiple. Increased hash rate also served to improve the sentiment of the miners further.  

Bitcoin is in a consolidation state and Fidelity sees this as an opportunity to take advantage of the market. The support levels are still holding at 86,000 and 88,500 respectively.

Ethereum Stumbles Short-Term, But Long-Term Signals Appear

Ethereum ended Q1 at $2,246, down 45% over the quarter. At times, it fell below both the 50-day and 200-day moving averages. A dead cross in March added to the short-term bearish outlook, according to Fidelity.

Still, deeper market signals reveal potential. Ethereum’s MVRV Z-Score hit the “undervalued” range—historically a sign of accumulation. The NUPL metric dipped into a zone linked to market capitulation, often followed by bottoming out.

Activity on Ethereum’s base layer dipped slightly. Layer 2 volumes also fell 11%. But future upgrades, especially Pectra—which will double blob capacity—could restore momentum. Staking is growing again, albeit modestly. The network also turned slightly inflationary, at 0.63% annually.

Looking Ahead to Q2

Fidelity maintains a neutral stance on Bitcoin in the short term but remains confident overall. The optimism stems from strong on-chain activity and continued institutional interest.

Ethereum may face short-term struggles, possibly deterring some investors. However, its current undervaluation and upcoming upgrades could draw long-term holders back in.

Overall, Fidelity suggests Bitcoin will remain a reliable asset. Ethereum, on the other hand, may offer greater returns—but only to those who can ride through its current turbulence.

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