While Bitcoin and altcoins continue to follow a complex course with both increases and decreases, a warning came from Coinbase, the largest exchange in the United States.
Coinbase Research has warned of a possible impending crypto winter in its latest report.
Accordingly, Coinbase noted that both Bitcoin and the COIN50 index have fallen below their respective 200-day moving averages, a sign that the market may be in the early stages of a long-term downtrend.
Beware of Crypto Winter!
Analysts led by David Duong, head of institutional research at Coinbase, said in a recent report that macro pressures such as global tariffs and fiscal tightening have slowed risk appetite and left crypto and traditional markets in a state of “paralysis.”
Analysts noted that macroeconomic pressures in the market have brought out extreme negative sentiment, which could herald a new period of “crypto winter.”
Duong said that several important indicators are flashing red. At this point, the 200-day moving average indicator, which many investors see as a dividing line between bull and bear trends, is reported to be red for both Bitcoin and the Coinbase COIN50 index. This technical breakdown could be an indication that the cryptocurrency market is about to enter a bear market cycle. Duong added that while venture capital funding for cryptocurrencies increased in the first quarter of 2025 compared to the previous quarter, it is still 50%-60% below the levels at the peak of the 2021-2022 cycle. According to Duong, this situation significantly limits the inflow of new capital into the crypto ecosystem, especially altcoins, and is a significant obstacle to the rise.
Coinbase remains optimistic about the second half of 2025 despite the negative signs in the market.
At this point, Coinbase believes that investors should take a tactical approach to the market. Coinbase notes that market sentiment will eventually reset, and that could happen quite quickly, and is optimistic about the market in the second half of 2025.
“For now, the challenges of the current macro environment require greater caution. However, we remain optimistic about the second half of 2025.”
*This is not investment advice.
