A cryptocurrency winter characterized by steep losses and stagnation now looks likely.
The institutional investment arm of crypto exchange Coinbase Global (COIN) says it looks like the bull run in Bitcoin (BTC) and other digital coins and tokens has now ended and we’re headed for a new “winter phase.”
Coinbase made the call on a crypto winter as Bitcoin’s price fell below its 200-day moving average, a negative sign that indicates a further decline in its price is likely.
Bitcoin first fell below its 200-day simple moving average on March 9 of this year and has since flashed signs of long-term bearish momentum.
The price of Bitcoin has fallen 23% from an all-time high of just over $109,000 U.S. reached on Jan. 20, the day of U.S. President Donald Trump’s inauguration.
A decline of 20% or more from recent highs is the technical definition of a bear market on Wall Street.
In its report, Coinbase argues that the 20% decline in Bitcoin likely fails to capture poor investor sentiment and portfolio adjustments that have been caused by smaller intense selloffs in recent weeks.
Other cryptocurrencies, such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), have declined even more than Bitcoin in recent weeks.
Coinbase concludes that the most recent bull market in cryptocurrencies likely ended in late February of this year.
We’re now entering a new phase in the crypto market characterized by a winter that’s likely to bring with it even lower prices and stagnation, says Coinbase.
Coinbase adds that the crypto market may find a floor in late 2025. Bitcoin is currently trading at $84,000 U.S. per digital token.
