Leading U.S.-based cryptocurrency exchange Coinbase has released its latest monthly market review, indicating a significant contraction in the crypto market and bearish sentiment. However, the report suggests a potential turnaround is on the horizon, with expectations of a rebound in the third quarter of 2025.
According to Coinbase’s April 15 outlook for institutional investors, the total market capitalization of altcoins has shrunk by a substantial 41%, falling from a high of $1.6 trillion in December 2024 to $950 billion by mid-April. Data from BTC Tools further highlights this downturn, showing the altcoin market cap briefly dipping to $906.9 billion on April 9th before slightly recovering to $976.9 billion at the time of writing.
The report also points to a significant decline in venture capital funding for crypto projects, reportedly dropping by 50%–60% compared to the levels seen in 2021–22. David Duong, Coinbase’s global head of research, suggests that these converging signals could indicate the beginning of a new “crypto winter.”
“Several converging signals may be pointing to the start of a new ‘crypto winter’ as some extreme negative sentiment has set in due to the onset of global tariffs and the potential for further escalations,” Duong stated in the report.
Coinbase analysts attribute this market turmoil to broader macroeconomic headwinds. The report notes that reduced venture capitalist interest “significantly limits the onboarding of new capital into the ecosystem,” particularly impacting the altcoin sector. Duong explained that “All of these structural pressures stem from the uncertainty of the broader macro environment, where traditional risk assets have faced sustained headwinds from fiscal tightening and tariff policies, contributing to the paralysis in investment decision making.”
