Coinbase Warns of Looming Crypto Winter as Market Signals Point to Prolonged Downturn

Coinbase, one of the largest cryptocurrency exchanges, has raised alarms about the potential onset of a new ’crypto winter,’ marked by declining valuations, deteriorating technical indicators, and weakening investor sentiment. In its April Monthly Outlook report, the exchange highlighted a 41% drop in the total crypto market capitalization (excluding Bitcoin) since its peak, signaling a possible extended downturn. The warning comes amid growing concerns over liquidity constraints and fading enthusiasm in the digital asset space.

Coinbase Warns of Potential New Crypto Winter

Coinbase has issued a warning about the potential for a new crypto winter, citing a steep decline in crypto valuations and a breakdown of key technical indicators. The crypto exchange’s April Monthly Outlook report noted that market signals are increasingly pointing to a prolonged downturn, marked by falling prices, reduced liquidity, and waning investor enthusiasm. The total crypto market cap, excluding Bitcoin (BTC), has plunged 41% since reaching a peak of $1.6 trillion in December 2024, now sitting at $950 billion. This drop coincides with a sharp pullback in venture capital investment, which remains down 50–60% from its 2021–2022 highs.

BASE (BASE) News Today: Coinbase’s BASE Under Fire After Meme Token Crashes Over 90%

A meme token promoted by Base on Coinbase saw its value skyrocket and then plummet by over 90%, erasing $15 million in value within 20 minutes. The event sparked debates about ethics in token promotion and raised questions about insider trading. On-chain analytics identified three wallets that bought large amounts of the token before Base’s public post, later selling for a combined profit of approximately $666,000.