The steep decline in crypto valuations and a breakdown of key technical indicators may signal the start of a new bear market for digital assets, according to a new report from Coinbase.

In its April Monthly Outlook report, the crypto exchange warned that market signals are increasingly pointing to what many in the industry call a “crypto winter,” a prolonged downturn marked by falling prices, reduced liquidity, and waning investor enthusiasm.

The total crypto market cap, excluding Bitcoin (BTC), has plunged 41% since reaching a peak of $1.6 trillion in December 2024. As of mid-April, it now sits at $950 billion, below levels seen for most of 2022.

The drop coincides with a sharp pullback in venture capital investment, which remains…