Bitcoin’s price currently sits around $83,794, slipping by 2.47% in the last 24 hours. Even with this short-term dip, it’s still showing gains of over 8% in the last week. At first glance, the drop might not seem significant, but there are growing signs that the market could be entering a deeper bearish phase—what many call a “crypto winter.”
According to a recent update from Coinbase, multiple factors are putting pressure on the crypto space. Global trade tensions, weakening investor confidence in the stock market and a sharp drop in the broader crypto market (excluding BTC) are raising concerns. That market has fallen by 41% since December 2024 and now stands at around $950 billion, a level not seen since late 2021 through early 2022.
In traditional finance, a 20% decline usually signals a bear market. However, crypto often moves on a different timeline. For example, Bitcoin lost about 76% of its value between November 2021 and 2022, far steeper than the 22% drop in U.S. stocks during the same period. That kind of volatility fuels both opportunity and fear, and with BTC now trading below its 200-day average, historical trends suggest we may be entering a longer downturn.
Still, market sentiment isn’t shaped by numbers alone. As Coinbase pointed out, bear markets in crypto often represent larger shifts in market dynamics rather than just declines in price. Instead of relying on fixed benchmarks, analysts are paying more attention to technical metrics such as moving averages and z-scores to interpret BTC’s behavior.
On the brighter side, Glassnode data shows a rise in the number of large holders—wallets owning between 1,000 and 10,000 BTC have risen to 2,014 from 1,944 since early March. This uptick in so-called “whale” wallets suggests that some investors, possibly high-net-worth persons or institutions, are becoming more confident and are buying during the dip. The same trend was seen in April last year.
While Bitcoin’s price action grabs attention, newer altcoins are gaining momentum too. One such project is Minotaurus (MTAUR), a Web3 gaming initiative that blends strategic gameplay with blockchain mechanics. The MTAUR token provides access to special features and upgrades within the game, driving interest from both the crypto and gaming communities.
Despite the challenges ahead, Coinbase suggests maintaining a cautious outlook for the next month or so while also hinting that crypto markets could find a bottom by the end of the second quarter of 2025. Between Bitcoin’s resilience and growing interest in emerging projects, the next few months could shape the direction of the crypto space significantly.
Crypto firms like HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) (TSX.V: HIVE) will be keeping an eye on the market direction over the coming months and adjusting their strategies in order to take into account any changes that emerge.
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