Coinbase warned that crypto could enter a new lowering market, but it expects prices to find support between May and June, setting up a stronger Q3.
In its monthly report published on April 15, Coinbase noted that the total market capitalization of cryptography, excluding Bitcoin (BTC), dropped by 41% of its peak of $ 1.6 Billion in December 2024 to around 950 billion dollars. At the same time, venture capital investment in the crypto remains 50 to 60% below the summits observed during cycle 2021-2022.
These developments, as well as global prices and continuous economic uncertainty, have added pressure on the market, especially for altcoins. Many investors generally define a lower market as a price drop of 20%, but Coinbase estimates that this rule no longer works well for the crypto.
Rather, it recommends the use of yields adjusted to risk and the 200 -day mobile average to better understand the longer term market quarters. For example, while Bitcoin has been down less than 20% since December, it fell below its mobile average at 200 days, indicating a larger change on the market.
The report also mentions that the Coin50 Coin50 index, which follows the 50 best non -bitcoin chips, also slipped below this level. This often points out that market weakness could continue longer. Although Bitcoin’s decline was modest, altcoins have undergone much higher losses.
Coinbase underlines that this gap shows increased volatility in the new crypto sectors, such as even, the depolition projects and tokens linked to artificial intelligence. Consequently, relying only in Bitcoin to judge market conditions may no longer suffice. Larger indicators like Coin50 offer a more complete view of the feeling of investors.
Coinbase remains carefully optimistic despite the recent difficulties. He sees a chance for the market to reach a bottom of the middle in T2 2025 from the middle to the end of 2025, with a possible recovery in Q3 if the world conditions are improving. Until then, the company recommends a prudent and flexible approach, because investors are faced with lower liquidity and a lower appetite for risk.
