Catenaa, Sunday, April 20, 2025- Coinbase Research has cautioned that the cryptocurrency market may be entering a new crypto winter, citing a mix of bearish technical indicators, declining sentiment, and intensifying macroeconomic pressures.
In a note issued Tuesday, David Duong, head of institutional research at Coinbase, said that both Bitcoin and the firm’s COIN50 index have dropped below their 200-day moving averages — a traditional red flag for prolonged market downturns.
“The market appears to be approaching conditions last seen in the 2022 collapse,” Duong wrote, urging investors to adopt a defensive strategy as volatility escalates.
The total crypto market cap, excluding Bitcoin, has plunged to $950 billion, marking a 41% slide from its December 2024 peak. That level is below valuations recorded during much of the August 2021 to April 2022 cycle. Meanwhile, venture capital investment remains stagnant, with current levels 50% to 60% lower than during the 2021 bull run.
Coinbase attributes the market retreat to rising global tariffs and continued fiscal tightening, which have dried up risk appetite and capital inflows. “The environment is paralyzed,” Duong noted, referencing both traditional and digital assets under strain.
While the term “crypto winter” evokes memories of the 2021–2023 collapse, Coinbase emphasized that a recovery could still materialize in late Q2 or early Q3. The report maintained cautious optimism, suggesting sentiment could swiftly rebound once external pressures subside.
