Coinbase Report Warns of Potential Crypto Winter as Bitcoin Struggles to Hold Gains

Bitcoin’s recent price action has left investors questioning whether the market is on the verge of another crypto winter or poised for a rebound. Currently trading around $83,793.85, BTC has seen a 2.47% decline in the past 24 hours, though it remains up 8.39% for the week. The minor pullback masks deeper concerns, as highlighted in a recent Coinbase report pointing to bearish indicators such as global tariff escalations, dwindling risk appetite in equities, and a sharp 41% contraction in the total crypto market cap. These factors suggest growing macroeconomic headwinds that could prolong the current downturn. While some traders remain optimistic about a near-term recovery, Coinbase’s analysis underscores the fragility of the market’s recent gains and the potential for further declines if risk-off sentiment persists.

Bitcoin Price at a Crossroads: Crypto Winter or Rebound Near?

Bitcoin is currently worth around $83,793.85, marking a 2.47% decline over the past 24 hours, despite still being up 8.39% over the past week. While Bitcoin’s pullback might appear minor, deeper market signals hint at possibly the onset of a new crypto winter. Coinbase’s recent report outlines bearish indicators such as global tariff escalations, reduced risk appetite in equities, and a notable 41% drop in the total crypto market cap (excluding BTC) from its December 2024 highs, now sitting at $950 billion.

Crypto Companies Eye U.S. Bank Licenses for Growth

Major cryptocurrency companies such as Coinbase, Circle, Paxos, and BitGo are planning to apply for banking or financial licenses to integrate with the U.S. banking system. This move aims to secure formal ties with the established financial sector amid regulatory pressures and the collapse of FTX and crypto-friendly banks.