The cryptocurrency market is once again facing negative trends. Coinbase's latest report highlights the potential onset of a 'crypto winter' characterized by falling prices and low trading activity.
Worrying Trends in the Crypto Market
In its report, Coinbase notes that the total market capitalization of cryptocurrencies, excluding Bitcoin, has fallen to $950 billion, marking a 41% drop from December 2024. Prices are lower than they were at the end of 2021 and early 2022.
Investment Climate Has Significantly Deteriorated
Investments in crypto startups surged earlier this year but remain 50-60% below the levels seen in 2021 and 2022. Coinbase states that the lack of fresh capital has slowed innovation across key sectors.
Future Prospects
Coinbase does not predict a quick recovery for the market but expresses hope for improvements in the second half of 2025 if inflation decreases or interest rates remain low. 'Once the mood resets, it might do so fast,' Coinbase states.
Currently, the cryptocurrency market is experiencing serious difficulties, but potential changes in the economic environment may provide it with a new boost.
