The cryptocurrency market is entering a bearish phase, marked by significant losses and stagnation, as indicated by Coinbase Institutional. Bitcoin's decline below its 200-day simple moving average (SMA) serves as a signal for a potential crypto winter. This development suggests a new bear market cycle, beginning in late March. David Duong, the global head of research at Coinbase Institutional, highlighted that the entire COIN50 index, which includes the top 50 cryptocurrencies by market cap, has been in bear territory since late February. Unlike traditional markets, the crypto space often does not conform to the 20% correction metric typically used to define bear markets. Instead, Duong asserts that the real indicators of bear markets are shifts in investor sentiment, deteriorating fundamentals, and reduced liquidity. He also emphasized the importance of evaluating bitcoin's performance against its historical data to better ascertain market trends. Investors may need to adjust their portfolios in response to even minor dips in sentiment, which can evoke defensive strategies regardless of not hitting the standard bear market thresholds.

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