Coinbase Flags Crypto Bear Market, Expects Q3 Recovery Ahead

3d ago•

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bearish:

Leading U.S. crypto exchange Coinbase warns investors about a fresh crypto market bear market start because altcoins lost value fast and venture capital funds slowed but economic headwinds grew. The report shows that a market bottom could develop around May/June before establishing better results in the third quarter.

On April. 15, Coinbase published its market report showing the crypto market cap except Bitcoin decreased by 41% from $1.6T in December 2024 to $950B as of mid April. The current market situation includes a prolonged decrease in venture capital funding that dropped 50% to 60% from its previous peak.

Coinbase Urges Smarter Metrics for Crypto Market Analysis

Coinbase Flags Crypto Bear Market, Expects Q3 Recovery Ahead

The report explains these market issues are interconnected since global customs regulations and economic instability create major problems for alternative digital currencies.

According to Coinbase, the traditional 20% definition of a bear market no longer makes sense for cryptocurrencies because of their exceptional market volatility and changing conditions. The Exchange proposes using standardized profit and loss measures with market trends spanning 200 days to observe investment growth.

Bitcoin shows a clear market decline because it fell below its 200-day moving average even though Bitcoin prices dropped by less than 20% since December. Exchange experts see that this market shift moves past regular changes and requires new strategy analysis.

Coinbase Highlights COIN50 Dip as Bearish Signal

The company focused on its proprietary COIN50 index to show digital asset market sentiment better than standard indicators. Buy interest in the market deteriorated when the COIN50 dropped below its 200-day trend line to signal possible ongoing weakness.

Most alternative cryptocurrencies now experience market losses more than Bitcoin does according to the source. Bitcoin maintains its strength even though the entire market shows declining trends.

Bitcoin No Longer Enough to Gauge Market Sentiment

Coinbase Flags Crypto Bear Market, Expects Q3 Recovery Ahead

Exchange links the intense market swings in altcoins to increasing investments in speculative projects that develop artificial intelligence technologies and build cryptocurrency-based infrastructure systems. New investment stories create market weakness through extreme downfalls.

As a result, the firm warns against using Bitcoin alone as a benchmark for overall market health. The report defines the COIN50 index shows better results for understanding risk and investor actions than just monitoring Bitcoin.

Coinbase Predicts Market Recovery by Mid-to-Late Q2 2025

The signs of a market downturn do not change Coinbase’s moderate expectations. The company foresees improvements in the market patterns which will lead to recovery during the middle to late Q2 of 2025. The development of positive economic trends plus investor strength has the power to transform market conditions during mid-to-late Q2 2025.

According to Coinbase the current market conditions demand a measured response because investors are wary and trading activity has decreased. Under the present circumstances, companies must adjust their strategies while keeping firm control over risks, according to the latest report.

Through its data-based approach, Exchange guides investors through current market challenges as it predicts better conditions starting in mid-2025.

Conclusion

According to Coinbase, the crypto market continues to experience difficulties, but there remains the possibility of a market recovery between mid-Q2 and late-Q2 2025. Its current analysis suggests checking out the COIN50 trends while keeping diverse trading options to react if crypto markets recover later in Q3.