Coinbase analysts are projecting a period of market downturn before a recovery takes hold, suggesting the crypto bottom may not be reached until late in the second quarter. Their report with Glassnode reveals that while long-term Bitcoin holders continue to accumulate during this period of price decline, they anticipate further market weakness before significant upward movement. 30-day volume data shows Bitcoin’s liquid supply declined significantly in Q1 of 2025. Long-term holders have resumed steady accumulation since late February, particularly after Bitcoin’s price dropped below $90,000. Despite this accumulation trend, Coinbase advises investors to adopt a defensive approach as long-term market risks remain evident. The firm emphasizes that continued caution is warranted for the moment while highlighting a potential positive outlook in mid-to-late Q2. This report suggests the crypto bottom could be reached by the end of Q2 2025. A bearish trend was also observed with Bitcoin and the COIN50 Index, which tracks the performance of the 50 largest cryptocurrencies, falling below their 200-day moving averages, a signal for prolonged downtrends, according to Coinbase analysts. If the Federal Reserve pauses its quantitative tightening policy, it could increase global liquidity and support digital asset markets. However, uncertainty around global trade dynamics and liquidity flows remain factors that could negatively impact investor sentiment in the coming months. In response to these market trends, Coinbase is expanding its operations, with a plan to bring over 130 new employees to Charlotte, North Carolina. The expansion focuses on compliance and customer service functions. To stay informed on crypto developments, visit DeFi Planet or follow us on Twitter, LinkedIn, Facebook, Instagram, and the CoinMarketCap Community. Access comprehensive crypto analytics tools through our Markets PRO suite.