Coinbase warns of another crypto winter because the market capitalization of old coins breaks up by 41%

Coinbase warns of another crypto winter because the market capitalization of old coins breaks up by 41%

• Bitcoin and Coin50 fall below the 200-day average values.
• venture capital remains 60% below the level of 2021 despite the mild setback.
• The market could stabilize between the middle and end of Q2 2025, says Coinbase.

The risk of another crypto winter increases this week, since important technical and macroeconomic indicators indicate that the market for digital assets may enter a further longer depression.

in a Note said that Bitcoin fell under his 200-day average-a level that was generally Signal is viewed.

The Coin50 index, which follows the best non-bitcoin assets on the platform, has also fallen under its long-term support.

Global tariffs and a prolonged financial tightening come to the market pressure, both of which burden investor trust and restrict tributaries in crypto.

The situation resembles the crash from 2022, when over $ 2 trillion in market capitalization was destroyed within $ 18 months.

Altcoins were hit the most. Without Bitcoin, the entire market capitalization for crypto has fallen by 41% since its high in December 2024 and is now $ 950 billion.

This value is below any level that was recorded between August 2021 and April 2022, a time when the market turbulence was already high.

Altcoins fall by 41%

According to Coinbase, according to Coinbase, the continued decline in old coins underlines the declining risk to risk for risky crypto investments.

tokens outside of the Bitcoin ecosystem have experienced sharp sales prints, in view of thin liquidity and a lack of new capital.

The Coin50 index is now far below its 200-day average, which indicates a general technical weakness in the sector.

The interest of individual dealers has also decreased, while institutional inflows are limited. This indicates that the prevailing optimism was largely gone at the end of 2024.

Many smaller projects do worse, especially those in niche areas such as decentralized AI, web3 gaming and tokenized real assets.

Financing remains low

The report by Coinbase also indicates stagnation in venture capital. Although the investment volume has increased moderately since the end of 2024, they are still 50% to 60% below the maximum cycle 2021–2022.

This has left many startups in the early phase without growth, which caused some to pause the development or to reduce their operational processes.

The lack of fresh capital has slowed down the innovation in important areas.

Many in the industry had expected that decentralized finances, meta-severse applications and crypto crowdfunding models would lead the next bull cycle. Instead, these areas have stalled.

Makro presses the mood

Coinbase mentioned external economic printing factors as a main reason for the latest decline.

A tighter monetary policy, high interest rates and the escalation of global tariffs have eroded the trust of investors.

David Duong, head of institutional research, said that the investment environment "paralyzes", since both traditional and crypto markets are under liquidity pressure.

These macroeconomic headwinds have discouraged speculation and restricted the flow of capital into digital assets.

dealers have withdrawn and instead concentrate on safe systems because geopolitical risks and inflation remain high.

A recovery could follow

Despite the darkness, Coinbase believes that the market could find a floor between middle and end q2 2025.

A stabilization of the macroeconomic conditions-in particular a reduction in inflation or loosening of interest rates-could help to revive the capital flows.

Coinbase warns of a possible crypto winter, since old coins fall by 41% and Bitcoin breaks important support. Market capitalization falls at 950 billion, which is similar to the decline of 2022.

According to Duong, the mood could be quickly realigned as soon as the market pressure subsides, which opens the door for recreation in the second half of the year.

The report does not make optimistic predictions, but notes that tactical positions in the current environment could be useful. Analysts propose to observe the liquidity trends and macroeconomic data closely, since they could represent potential signals for shifting the momentum.

The Coinbase contribution warns of a new crypto winter, since the market capitalization of old coins breaks up by 41%, first appeared on Coinjournal.