Coinbase Research has sounded the alarm on potential market trouble. Their latest report highlights that both Bitcoin and the COIN50 index have slipped below their 200-day moving averages.
That signal, widely seen as a pivot between bull and bear trends, suggests a deeper downturn may be forming.
David Duong, Coinbase’s head of institutional research, pointed to fading investor appetite. Rising global tariffs and fiscal tightening have weighed on risk assets across the board. As a result, both crypto and traditional markets are now drifting in what Duong called a state of paralysis.
Warning Signs Multiply
Duong and his team flagged several bearish indicators. Macro headwinds have intensified, dragging sentiment deep into negative territory. In technical terms, the ongoing breakdown under key moving averages shows weakness across major crypto assets.
One major concern is funding. While venture capital inflows rose modestly in Q1 2025, they remain 50–60% lower than 2021–2022 highs. This shortfall limits growth, particularly for altcoins that depend heavily on new capital.
Strategy for What Comes Next
Despite these warnings, Coinbase isn’t completely bearish. The firm sees potential for a market reset in the second half of 2025. In the short term, though, they recommend caution and a tactical investment approach.
“Macro conditions are tough right now,” Duong said. “But we remain optimistic for the second half of the year.”
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/coinbase-warns-of-possible-crypto-winter-ahead/