Coinbase Sounds Alarm: Bitcoin's Short-Term Woes to Linger Until Late Q2!

Buckle Up, Crypto Fans: The Ride's Gonna Be Bumpy!

Hang onto your hats, crypto enthusiasts! Coinbase is dropping some serious truth bombs about Bitcoin's near future, and it ain't all sunshine and rainbows. They're warning that the market might stay weak until at least the end of the second quarter. Yikes!

Coinbase's analysts aren't pulling any punches. They're straight-up saying that we might not see the bottom of this crypto rollercoaster until late Q2. Talk about a wild ride!

In a bombshell report with blockchain brainiacs Glassnode, Coinbase is spilling the tea. Sure, long-term Bitcoin holders are stacking more coins like it's going out of style, but don't get too excited. The exchange is still bracing for more market turbulence before any real recovery kicks in.

"Bitcoins' liquid supply (coins moved within three months) took a nosedive in Q1 2025. That means those long-term Bitcoin hodlers have been snatching up more BTC since late February when the price tanked below $90,000."

Coinbase

But hold up, don't start celebrating just yet. Coinbase is waving a big red flag, saying we might need to play it safe in the short term. They're worried about more market meltdowns on the horizon.

"We're telling everyone to keep their risk-taking in check for now. But hey, we still think crypto prices might hit rock bottom by mid-to-late Q2 2025, setting the stage for a killer Q3."

Coinbase

Get this: both Bitcoin and the COIN50 index (which tracks the 50 biggest cryptos by market cap) have crashed through their 200-day moving averages. That's a big ol' red flag for bearish vibes.

Looking ahead, Coinbase is keeping an eye on the Fed. If they hit pause on quantitative tightening, it could be a game-changer for global liquidity and give crypto markets a much-needed boost. But hold your horses, because there's still a ton of uncertainty out there, especially when it comes to global trade and liquidity. It's enough to make your head spin!