According to Coinbase's monthly outlook for April 2025, the cryptocurrency market might experience fluctuations or downward pressure in the next 4-6 weeks. This forecast by Coinbase offers a balanced perspective, combining caution and optimism compared to other market predictions.
Coinbase foresees potential stabilization of crypto prices in the middle to late Q2 (May to June 2025), setting the stage for growth in Q3 (July to September). Despite a QCP Capital report suggesting a bullish Q2 for cryptocurrencies, Coinbase anticipates negative market volatility between April and mid-May. The observation that Bitcoin and the COIN50 index have dipped below their 200-day moving average indicates a possible start of a bearish market trend.
The volatility in the crypto market is attributed to global economic uncertainties, including new tariff policies, tight fiscal measures, and macroeconomic factors impacting risk assets like cryptocurrencies. Investors are advised by Coinbase to exercise caution and employ defensive risk strategies.
Looking beyond the short-term concerns, Coinbase remains positive about the mid-term outlook, foreseeing price stability in mid-to-late Q2 due to favorable factors. Historical patterns indicate that markets tend to stabilize in Q2 after sharp corrections in Q1.
ARK Invest's Big Ideas 2025 report also predicts a year of significant growth for cryptocurrencies in 2025, driven by institutional adoption and technological advancements. Factors such as looser monetary policies and declining bond yields could further support risk assets in early Q2.
Increased institutional involvement, particularly through spot Bitcoin ETFs, is highlighted in Coinbase's 2025 Crypto Market Outlook and ARK Invest notes that regulatory clarity and blockchain innovations will contribute to market stability and growth. Q3 2025 is anticipated to be a period of strong growth, supported by Bitcoin's post-halving cycle, which historically leads to substantial price upticks. Approvals for more crypto ETFs in the US and improved regulations are seen as potential catalysts for further market growth as predicted in Coinbase's outlook.