Coinbase Warns: Crypto Market Will Stay Weak Until Late Q2, But Don’t Panic (Yet!)

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Hold on to your hats, folks! It seems the crypto rollercoaster is taking a little detour into the land of weakness. Coinbase has waved the yellow flag, warning that the market might be stuck in a bit of a slump until—wait for it—late Q2. So, don’t go selling your Bitcoin just yet (but maybe hold off on that Lambo purchase, too).

According to Coinbase’s analysts (those crypto fortune tellers), things don’t look so hot in the short run. They’re predicting the “floor” (yes, that dreaded bottom) won’t show up until at least the tail end of Q2. Buckle up, buttercup.

In a joint research report with the so-called brainiacs over at Glassnode, Coinbase has been staring into the blockchain crystal ball and deduced that while long-term Bitcoin (BTC) holders are quietly hoarding coins like squirrels with acorns, things still look a bit dicey. The exchange is saying, “You know, a little more patience might be required before any big crypto party starts.”

“Bitcoin’s liquid supply (that’s the fancy term for coins moving around within three months) took a nosedive in the first quarter of 2025, indicating that those deep-pocketed Bitcoin aficionados have been on a buying spree since late February—just as the price dipped below $90,000. Who knew cheap Bitcoin would be a thing?!”

Coinbase

But don’t go popping the champagne just yet. Coinbase is still urging everyone to be careful, saying that “a defensive approach” could be the best move right now. Apparently, they’re worried about a potential market nosedive. Just what we needed, more reasons to worry about our wallets. 😬

“We think a defensive stance on risk-taking may be warranted for the time being, but we still believe that crypto prices may be able to find their floor in mid-to-late 2Q25—setting up a better 3Q25.”

Coinbase

Oh, but here’s the kicker: Coinbase also noted that Bitcoin and the COIN50 index—what’s that? Oh, just the snazzy tracker for the 50 biggest cryptocurrencies—have recently dipped below their 200-day moving averages. Translation: The bears are out to play. 🐻

Looking ahead, Coinbase speculates that if the Fed decides to press pause on its quantitative tightening (don’t worry, it’s not as exciting as it sounds), global liquidity could get a nice boost. This might give the crypto markets a much-needed pick-me-up. But, of course, with global trade uncertainties still lurking around like a storm cloud, who knows what could happen next?

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2025-04-25 12:41