Bitcoin and COIN50 fall below 200-day moving averages.
\nVenture capital remains 60% below 2021 levels despite mild rebound.
\nMarket may stabilise between mid and late Q2 2025, says Coinbase.<\/p>\n
The risk of a renewed crypto winter is rising, Coinbase Research warned this week, as key technical and macroeconomic indicators suggest the digital asset market may be entering another prolonged downturn.<\/p>\n
In a note published yesterday<\/a>, Coinbase said Bitcoin has slipped below its 200-day moving average\u2014a level widely seen as a bearish signal.<\/p>\n The COIN50 index, which tracks the top non-Bitcoin assets on the platform, has also fallen beneath its long-term support.<\/p>\n Adding to the market stress are surging global tariffs and prolonged fiscal tightening, both of which are weighing on investor sentiment and curbing inflows into crypto.<\/p>\n The situation echoes the 2022 crash, when over $2 trillion in market value was wiped out within 18 months.<\/p>\n Altcoins have been hit the hardest. Excluding Bitcoin, the total crypto market cap has dropped 41% since its December 2024 peak, falling to $950 billion.<\/p>\n That figure is lower than any level recorded between August 2021 and April 2022, a time when market turbulence was already high.<\/p>\n According to Coinbase, the sustained drawdown in altcoins highlights the weakening appetite for riskier crypto investments.<\/p>\n Tokens outside the Bitcoin ecosystem have seen sharp sell-offs amid thin liquidity and a lack of new capital.<\/p>\n The COIN50 index now trades well below its 200-day average, signalling broad technical weakness across the sector.<\/p>\n Retail interest has also declined, while institutional flows remain limited. This suggests that the bullish momentum seen in late 2024 has largely dissipated.<\/p>\n Many smaller projects are underperforming, particularly those in niche segments such as decentralised AI, Web3 gaming, and tokenised real-world assets.<\/p>\n Coinbase\u2019s report also points to stagnation in venture capital. Although investment volumes have picked up modestly since late 2024, they remain 50% to 60% below the highs recorded during the 2021\u20132022 cycle.<\/p>\n This has left many early-stage startups without the runway to scale, pushing some to pause development or downsize operations.<\/p>\n The absence of fresh capital has slowed innovation across key verticals.<\/p>\n Many in the industry had expected decentralised finance, metaverse applications, and crypto crowdfunding models to lead the next bull cycle. Instead, these areas have stalled.<\/p>\n Coinbase cited external economic pressures as a major reason for the recent slump.<\/p>\n Tighter monetary policy, high interest rates, and the escalation of global tariffs have all eroded investor confidence.<\/p>\n David Duong, head of institutional research, said the investment environment has become \u201cparalysed\u201d as both traditional and crypto markets face liquidity stress.<\/p>\n These macro headwinds have discouraged speculation and limited the flow of capital into digital assets.<\/p>\n Traders have pulled back, focusing instead on safe-haven assets as geopolitical risk and inflation remain elevated.<\/p>\n Despite the gloom, Coinbase believes the market may find a bottom between mid and late Q2 of 2025.<\/p>\n A stabilisation in macro conditions\u2014particularly a slowdown in inflation or an easing of interest rates\u2014could help revive capital flows.<\/p>\n Coinbase warns of a potential crypto winter as altcoins drop 41% and Bitcoin breaks key support. Market cap falls to $950b, mirroring 2022\u2019s downturn.<\/p>\n According to Duong, sentiment may reset quickly once market stress subsides, opening the door to a recovery in the second half of the year.<\/p>\n The report stops short of making bullish predictions but says tactical positioning may be useful in the current environment. Analysts suggest keeping a close eye on liquidity trends and macro data as potential signals of a shift in momentum.<\/p>\n The post Coinbase warns of renewed crypto winter as altcoin market cap plunges 41%<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Bitcoin and COIN50 fall below 200-day moving averages. Venture capital remains 60% below 2021 levels despite mild rebound. Market may stabilise between mid and late Q2 2025, says Coinbase. The risk of a renewed crypto winter is rising, Coinbase Research warned this week, as key technical and macroeconomic indicators suggest the digital asset market may […]<\/p>\n","protected":false},"author":0,"featured_media":2992,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-2991","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=2991"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/2991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/2992"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=2991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=2991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=2991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Altcoins fall 41%<\/h2>\n
Funding stays low<\/h2>\n
Macro weighs on sentiment<\/h2>\n
Recovery may follow<\/h2>\n