PANews reported on April 16 that Coinbase said in its latest report that some extreme negative sentiment has emerged due to the implementation of global tariffs and the potential for further escalation, which may herald the beginning of a new round of "crypto winter". At the same time, although venture capital funding for cryptocurrencies in the first quarter of 2025 increased from the previous quarter, it was still 50%-60% lower than the peak of the 2021-2022 cycle. This has greatly restricted the entry of new capital into the cryptocurrency ecosystem, especially in the field of altcoins. In the case of poor stock market performance, even if the regulatory environment brings some unique favorable factors, the road to recovery in the cryptocurrency market is still challenging. The interaction of these factors paints a difficult cyclical outlook for the digital asset sector, which may require continued caution in the short term (perhaps the next 4-6 weeks). However, Coinbase also believes that investors need to take a tactical approach to the market, because Coinbase expects that when market sentiment is finally reset, the process may be quite rapid, and is optimistic about the market in the second half of 2025. In addition, the report pointed out that recently, both Bitcoin (BTC) and the COIN50 index fell below the 200-day moving average (200DMA). This technical breakdown may indicate that the crypto market is about to enter a bear market cycle.
Coinbase: Market sentiment indicates the beginning of a new round of "crypto winter", but optimistic about the second half of the year
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