A recent report from Coinbase suggests the onset of a new crypto winter, highlighting significant declines in market capitalization and assets.
Market Decline
The cryptocurrency market cap, excluding Bitcoin, has fallen to $950 billion, representing a 41% drop from its December 2024 peak. It is also 17% lower than a year ago.
Overall Investment Downturn
Despite a slight uptick in venture capital activity in Q1 2025, investment levels remain 50-60% below the record highs of 2021-2022. Coinbase analysts predict that the current downturn may last another 4-6 weeks.
Alternative Market Indicators
Coinbase is using new tools for risk-adjusted performance to assess changes in the market. Their models indicate that the recent bear market is validated by declines in Bitcoin and other cryptocurrencies.
The Coinbase report indicates that the cryptocurrency market is facing a new winter, which may have long-term implications for investors and traders.
