Coinbase Report: 41% Drop in Altcoin Market Sparks New Crypto Winter Concerns

Jakarta, Pintu News – The recent sharp decline in the market capitalization of altcoins is a major concern for market participants and crypto analysts. According to a recent report from Coinbase Research, the market capitalization of cryptocurrencies-excluding Bitcoin-has decreased by 41% from its peak in December 2024.

This decline raises fears of a resumption of the period known as crypto winter, a time when the market experiences prolonged stagnation and minimal growth in value.

Altcoin Market Capitalization Plunges to IDR 15,979 Trillion

The report said that since December 2024, the crypto market capitalization (excluding Bitcoin) dropped from $1.6 trillion to $950 billion or from around Rp26,912 trillion to Rp15,979 trillion (at an exchange rate of Rp16,820/USD). Not only is this a significant drop in absolute value, but it also means the market is 17% lower compared to the same period last year.

This decline is even deeper than the similar trend that occurred between August 2021 and April 2022. In addition, funding from venture capital to the crypto sector is also still 50% to 60% lower than during the peak in the 2021-2022 cycle. This decline in funding directly affects the amount of new capital coming into the cryptocurrency ecosystem, ultimately slowing down innovation and growth of new projects.

Also Read: XRP Current State: Price Consolidation and Potential Breakout Amid Ripple and SEC Deal

Macroeconomic Uncertainty is the Main Trigger

According to Coinbase, the main factor behind investor caution is global economic uncertainty. Investors are struggling to determine market direction due to structural pressures from tight fiscal policies and rising international trade tariffs. In this situation, risky assets-including crypto-are under significant pressure, despite idiosyncratic support from the regulatory side that is starting to become clearer.

The report also highlights that this uncertainty is fueling stagnation in investment decision-making. With global stock markets also struggling with similar pressures, the recovery path for crypto assets is becoming increasingly challenging. However, Coinbase believes that altcoins still have recovery potential, especially if macro conditions begin to improve in the second half of 2025.

COIN50 Index and Bear Market Signals

One of the important indicators in the Coinbase report is the COIN50 Index, which is an index that reflects the performance of the 50 crypto assets with the largest market capitalization. The index has shown a bearish market trend since late February 2025, reflecting the high volatility and greater risk attached to altcoins when compared to Bitcoin.

The 41% drop in altcoin market capitalization is a reflection of the immense pressure faced by high-risk digital projects. In the crypto ecosystem, altcoins often have greater risk exposure due to a lack of institutional support and more extreme price fluctuations.

Coinbase suggests a temporary defensive stance

In the face of this situation, Coinbase recommends a more defensive investment approach. Their research team states that now is the time to “take a cautious stance on risk,” while waiting for a crypto price bottom to form in the mid to late second quarter of 2025. In other words, the first half of the year may still be full of uncertainty, but the third quarter is predicted to offer opportunities for recovery.

For cryptocurrency investors, especially those with exposure to altcoins, it is important to understand that digital market cycles are heavily influenced by external dynamics such as global monetary policy and capital market stability. Strategic moves and portfolio evaluation are key to surviving the potential next phase of crypto winter.

Conclusion

The 41% drop in altcoin market capitalization is an important warning signal for crypto investors. Although the current conditions suggest high pressure, the potential for recovery remains open if macroeconomic uncertainties can be resolved. For market participants, it’s a good time to exercise caution, weigh risk exposure, and wait for clearer signals of global market direction before making major decisions.

Also Read: XRP Price Outlook After Ripple and SEC Lawsuit Settlement

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Bitcoin.com News. Altcoin Market’s 41% Drop Signals Possible Crypto Winter – Coinbase. Accessed April 17, 2025.
• Featured Image: (marketwatch.com)