Bitcoin Signals Potential ‘Crypto Winter’ as Market Drops Below 200-Day Moving Average

On April 16, COINOTAG News reported insights from a Coinbase Research report highlighting that both Bitcoin and the COIN50 Index have fallen below their respective 200-day moving averages, suggesting a potential shift towards a prolonged bearish trend in the market. This aligns with the observed decline in total market capitalization and a decrease in venture capital funding, which are indicative of an impending “crypto winter.” The report further notes that discernible extreme negative sentiment has emerged amidst the introduction of global tariffs and potential escalation, raising the prospect of a new “crypto winter.”

In contrast, cryptocurrency venture capital saw a slight rebound in the first quarter of 2025, yet it remains substantially lower—by 50-60%—compared to the peak figures recorded in the 2021-2022 cycle. This scenario imposes significant limitations on new capital inflow, particularly within the altcoin space. The prevailing challenges in the broader macroeconomic landscape, characterized by persistent uncertainties and fiscal lethargy, have contributed to risk aversion in traditional markets and an overall cautious sentiment in the crypto sector.

Despite some favorable regulatory developments, the path toward recovery in the digital asset domain appears fraught with difficulties. Nonetheless, the report advises investors to adopt a calculated approach and maintain a level of optimism regarding market conditions in the latter half of 2025, as the current landscape may necessitate strategic decision-making over the next 4-6 weeks.