April 2025 saw the crypto market shaken by tariffs from US President Trump, affecting global markets but Bitcoin made a notable recovery. Ethereum’s tokenization of real-world assets increased by 20%, while US states introduced new pro-crypto legislation. Canada’s Liberal party won a minority government, adding ambiguity to future crypto policies. Stablecoin growth also continued, with a $4 billion increase in market cap during the month.
In April 2025, the crypto markets experienced significant volatility largely driven by new tariffs imposed by US President Donald Trump. The announcement of “discounted reciprocal tariffs” affected 185 countries, leading to dramatic drops in the Dow Jones and S&P 500, which fell 2,200 points and nearly 6% respectively in early April. Bitcoin, however, managed to diverge from the stock market downtrend, showing signs of recovery by the month’s end as investors adjusted to the harsh market conditions.
Despite the overall market turmoil, April brought positive news for Ethereum, especially in the area of real-world assets (RWAs). The network saw a 20% increase in its RWA tokenization value, now standing at $6.2 billion. Prominent firms like BlackRock are optimistic about blockchain technology becoming the standard for RWAs, although concerns about scalability persist among experts.
On the legislative front, various US states made strides towards embracing crypto-friendly laws, with Texas and Georgia introducing significant bills in April. Texas proposed a pilot program to explore blockchain’s benefits in government operations, while Georgia sought to raise awareness about blockchain and cryptocurrencies in K-12 education, underscoring the growing importance of technological literacy.
Meanwhile, the Canadian federal elections on April 28 resulted in the Liberal Party, led by Mark Carney, securing a minority government. Despite winning, Carney’s Liberals fell three seats short of the majority needed, making their policy direction, especially regarding cryptocurrencies, potentially uncertain. Carney previously expressed skepticism about crypto but has shown some openness to blockchain technology and central bank digital currencies.
Bitcoin’s performance through this chaotic month has been a topic of interest, closing up 16.16% at $94,729, after initially experiencing a 9% drop due to the tariff news. The broader crypto market, while recovering slightly, still faced a $1 trillion loss overall, compared to the staggering losses seen earlier in the month.
April also marked a milestone for stablecoins, with a market cap growth of $4 billion. Legal frameworks for these assets have been steadily developing, particularly in the United States, where the House passed a pivotal bill on stablecoin regulations. This could indicate a more structured approach to the asset class moving forward.
As traders and investors continue to navigate this post-tariff landscape, the regulatory developments emerging from Congress remain critical to watch. Optimism for the future potential of crypto is tempered by lingering uncertainties in the global market brought on by ongoing trade tensions, especially with China.
