Coinbase analysts are taking a cautious stance on the short-term crypto market, indicating that a bottom may not be reached until late in the second quarter.
A report with Glassnode highlights that while long-term Bitcoin holders are still accumulating, they anticipate additional market weakness before a significant recovery occurs.
According to the report, Bitcoin’s liquid supply, defined as coins moved within a three-month window, declined during the first quarter of 2025. This trend indicates that long-term holders have resumed steady accumulation since late February, especially as Bitcoin’s price dipped below the $90,000 mark.
Despite this accumulation trend, Coinbase emphasized that investors may need to take a defensive position in the short term. The firm pointed to persistent concerns over possible market downturns, noting that the broader environment still calls for caution.
“We think a defensive stance on risk-taking may be warranted for the time being,”
the analysts wrote.
“But we still believe that crypto prices may be able to find their floor in mid-to-late 2Q25 setting up a better 3Q25.”
Adding to the bearish sentiment, Coinbase highlighted that Bitcoin and the COIN50 Index, which tracks the performance of the 50 largest cryptocurrencies by market capitalization, have fallen below their 200-day moving averages, a technical signal typically associated with prolonged downtrends.
The firm pointed out that if the Federal Reserve paused its quantitative tightening policy, it could boost global liquidity and support digital asset markets. However, Coinbase analysts cautioned that broader uncertainties, especially around global trade dynamics and liquidity flows, could continue weighing on investor sentiment in the coming months.
Amid these market developments, Coinbase is also making strategic moves on the operational front. The company recently announced its expansion into Charlotte, North Carolina, with plans to hire over 130 employees. A spokesperson confirmed the initiative, citing Charlotte’s rise as a major fintech and compliance hub. The new hires, expected over the next six months, will primarily support compliance and customer service functions.
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