The crypto market may be entering a new period of long-lasting decline, known as a “crypto winter.” According to Coinbase Institutional, several signs suggest that the market is weakening. Falling prices, reduced investment, and growing global uncertainty point to a major market downturn. Altcoin Market Drops Sharply David Duong, Head of Research at Coinbase Institutional, shared a report on Tuesday showing how much the crypto market has fallen. The total crypto market cap, excluding Bitcoin (BTC), has dropped to $950 billion. This is a 41% fall from its $1.6 trillion peak in December 2024 and 17% lower than it was at the same time last year. Duong pointed out that this drop is even worse than most of the decline between August 2021 and April 2022. While altcoins have dropped significantly, Bitcoin has only fallen by less than 20%. This means the leading cryptocurrency is now more stable than most others. Duong also said venture capital investment in crypto increased slightly in the first quarter of 2025. However, it is still 50% to 60% lower than in 2021 and 2022. This drop in funding is a problem, especially for smaller altcoins. With less investment funding, starting new projects and growing the crypto industry is harder. Coinbase on Impact of Price Swings A 20% rise or fall in the stock market often signals a new trend. However, crypto prices can move more than 20% without real change. Duong said looking at other signs to understand the market is better. He suggested using tools like risk-adjusted performance and the 200-day moving average. He explained that the 200-day moving average (200DMA) is useful for spotting market trends. If prices stay above the 200DMA, the market is strong. If prices stay below it, the market may be weak. Tariff Fears Add More Pressure It was pointed out that crypto prices are falling partly because of worries about global trade policies . President Donald Trump recently talked about adding new tariffs. This made many investors nervous. These global issues, higher interest rates, and falling stock prices are making it harder for people to invest in risky assets like crypto. Even though the market is weak, Duong believes there could be a turnaround later in the year. He said prices may find support around the middle or end of the second quarter of 2025. If investor confidence improves, crypto could begin to recover in the third quarter. However, Duong also said that investors should be careful for now. The market is still facing many risks, and recovery may take time. Nevertheless, once market sentiment improves, recovery can happen quickly. Experts believe Coinbase is poised to benefit from crypto recovery . The post Coinbase Warns of a New Crypto Winter as Market Concerns Grow appeared first on TheCoinrise.com .
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