EddieJayonCrypto
17 Apr 25
Coinbase's April Monthly Outlook warns of a potential new crypto winter, citing a steep decline in crypto valuations and key technical indicators signaling a bearish market. The total crypto market cap, excluding Bitcoin, has dropped 41% from its December 2024 peak to $950 billion as of mid-April, a...
Coinbase’s April Monthly Outlook flags a potential new crypto winter as recent technical indicators and a sharp decline in valuations point to prolonged bearish conditions in the crypto market.The total crypto market capitalization, excluding Bitcoin, has fallen 41% from its December 2024 peak to $950 billion by mid-April, paralleling a 50–60% drop in venture capital investments compared to 2021–2022 highs. This downturn unfolds amid broader macroeconomic headwinds including global tariffs, fiscal tightening, and slipping equity markets.Technical analysis reveals that Bitcoin and the COIN50 Index—the latter tracking the 50 largest altcoins—have dipped below their 200-day moving averages, signaling entry into a bearish market cycle characterized by elevated risk and volatility. Coinbase’s research suggests Bitcoin’s 1.4 standard deviation drop from historical norms aligns with corrections seen in traditional bear markets, while the altcoin index has been in bear territory since late February.Despite near-term challenges and calls for defensive, selective positioning, Coinbase expresses cautious optimism for a market bottom by the end of Q2 2025 and a potential rebound in Q3. The report highlights the evolving complexity of the crypto landscape, noting Bitcoin’s diminishing role as a sole market proxy amid growing segments like DeFi, infrastructure tokens (DePIN), and AI-driven agents.In summary, while volatility and caution dominate the short term, Coinbase underscores that crypto’s long-term fundamentals remain intact, urging investors to adopt granular analysis approaches instead of treating the market as a monolith.