Coinbase Predicts Crypto Market Bottom by Mid-2025
Coinbase has issued a warning that the crypto market might be heading into a bear phase. However, the company sees a potential turnaround by mid-2025. In it’s April report, Coinbase highlighted a significant drop in the crypto market cap, excluding Bitcoin.The market value fell from $1.6 trillion in December 2024 to around $950 billion. This decline reflects a challenging period for digital assets.
Altcoins have been hit hard. The total market cap of altcoins has decreased by 41%. Venture capital funding in the crypto space is also down, sitting 50-60% below the 2021-2022 levels. Various factors, including global tariffs and economic instability, have contributed to this downturn. Many investors consider a 20% price drop as a bear market. But Coinbase suggests using different metrics for better insights. They recommend focusing on risk-adjusted returns and the 200-day moving average. These tools can definitely help gauge long-term trends more accurately.
Global trade tensions and economic uncertainty have intensified the pressure. Altcoins have suffered more than Bitcoin.This gap shows the increased volatility in newer sectors like memecoins and AI tokens. The firm believes that customary bear market indicators may not be enough. Broader indicators like the COIN50 provide a more complete view of investor sentiment.
Coinbase remains cautiously optimistic despite recent struggles. It sees a chance for the market to reach a bottom by mid-to-late Q2 2025, with a possible recovery in Q3 if global conditions improve. Until then, the firm recommends a cautious and flexible approach, as investors face weaker liquidity and a lower appetite for risk.
