Crypto Winter is Coming, Says Coinbase Institutional

Less than four months into the new year, the total crypto market cap, excluding Bitcoin, is down 41% from its December 2024 high.

In an Apr. 15 report, Coinbase Institutional, a division of the leading U.S. crypto exchange that caters to institutional investors, said several converging signs may be pointing toward the start of another crypto winter – a period of declining crypto prices and reduced market activity.

According to the report, extreme negative sentiment has set in within the crypto industry due to President Trump’s trade tariff policies and the potential for further escalation. Market sentiment is at its lowest level since the COVID crash in 2020.

Market Sentiment chart — Market Sentiment

The total crypto market cap, excluding Bitcoin, stands at $950 billion, a 41% decrease from its December 2024 high of $1.6 trillion. More concerning is that it is 17% lower than levels from the same period in 2024 and even lower than almost the entire period from August 2021 to April 2022.

Further, although venture capital funding increased in Q1 2025, it is still 50 - 60% below the levels observed during the 2021-22 cycle.

“With equities struggling, the path to recovery for crypto remains challenging, even with the idiosyncratic tailwinds from the regulatory environment,” said David Duong, CFA, Global Head of Research.