Coinbase Predicts Crypto Price Stabilisation by Mid-2025 Amid Bearish Signals

Coinbase suggests crypto prices may bottom out by mid-2025 due to bearish trends, particularly Bitcoin trading below its 200-day moving average. The COIN50 index indicates declining investor confidence in altcoins. Institutional funding remains low compared to previous cycles, delaying bullish expectations for a market recovery.

Coinbase researchers have indicated that cryptocurrency prices might find a bottom by mid-2025, initiating a potential recovery period thereafter. The price of Bitcoin (BTC) currently trades below its 200-day moving average, a bearish signal that raises caution among traders. Additionally, the COIN50 index has fallen across several significant measures, suggesting a careful approach towards various altcoins.

The latest Coinbase institutional report highlights the ongoing challenges in the cryptocurrency market amid shifting macroeconomic trends. The report suggests that decreasing optimism may signal the onset of a crypto winter, where negative sentiment has begun to outweigh bullish activity. Bitcoin has experienced considerable difficulties this year, hindering its potential upward movement, causing a spillover effect to altcoins.

Despite achieving a record high above $108,000, Bitcoin’s fortunes reversed due to broader economic trends, particularly its correlation with the stock market. Consequently, Bitcoin’s price has sharply declined to approximately $83,700, emphasising the bearish trend initiated in March following a prior downturn. The start of Q2 2025 witnessed further setbacks, such as the imposition of significant tariffs by President Trump.

An examination of the COIN50 index reveals a decline in trader confidence, with many assets continuing to remain within bearish territories since late February. This development has stifled hopes for a short-term altcoin season, leading to price breakdowns below critical support levels that previously energised altcoin bulls in January.

The total crypto market cap, excluding Bitcoin, has fallen by 41% from its December 2024 peak, reaching $950 billion. This contrasts with a less than 20% decline in Bitcoin during the same timeframe, reflecting the heightened volatility and risk associated with altcoins. Thus, there is an indication for traders to adopt a more defensive investment posture at present.

As the downturn unfolds, market cap reductions have dampened bullish forecasts heading into the second quarter. Additionally, while crypto venture capital (VC) funding has increased since last quarter, it remains 60% lower than during the 2021/2022 cycle. This lack of capital influx results in reduced investment opportunities, subsequently impeding the accumulation of significant assets for institutional players and postponing prospects for a bullish cycle.