After a highly volatile beginning to the year, the crypto market is showing signs that the worst decline may be ending. A new report from Coinbase Institutional and Glassnode says market data and blockchain activity are starting to improve. This could mean crypto prices are slowly finding a bottom.
Even with these positive signs, experts are still being careful. The global economy remains uncertain, with concerns about slower growth, rising inflation, and ongoing political tensions.
These issues are making investors nervous and keeping pressure on risky assets like crypto. For now, the market may be stabilizing, but stronger recovery could depend on wider economic conditions improving.
Signs of Stability Are Emerging
According to the report, both cryptocurrency and traditional markets are starting to show small signs of improvement. Some technical indicators suggest that the heavy selling seen in recent months may slowly be coming to an end.
Experts say digital assets are beginning to find stronger price support. This usually happens when markets move from panic selling into a calmer phase. While this does not confirm a full recovery, it can be an early sign that market conditions are becoming more stable.
Still, the situation remains uncertain. Global economic growth forecasts have been lowered, and concerns about a possible recession continue to make investors careful about putting money into riskier assets like crypto.
Macroeconomic Risks Still Dominate
The report highlighted that crypto prices are still being driven largely by macroeconomic forces rather than industry-specific developments. Rising geopolitical tensions in the Middle East and instability in global energy markets remain major concerns. Any further disruption could quickly pressure financial markets and weaken investor confidence.
Although positive developments such as clearer regulation and growing interest in artificial intelligence could benefit crypto over the long term, these themes are currently being overshadowed by larger economic concerns.
Analysts described crypto-specific catalysts as important for the future, but at the moment they are taking a back seat to broader market uncertainty.
Bitcoin Shows Signs of Investor Confidence
On-chain data for Bitcoin suggests that long-term investors are becoming more confident despite recent volatility. One important indicator, the Market Value to Realized Value ratio, shows that Bitcoin may have entered what analysts often call an accumulation zone.
This is a period when experienced investors begin increasing their holdings instead of selling. Long-term holders who have kept their Bitcoin for more than 155 days appear to be adding to their positions.
At the same time, short-term speculative supply fell significantly during the first quarter, indicating that weaker hands may have already exited the market. This pattern can sometimes signal that a market is moving closer to a bottom, as selling pressure from short-term traders starts to decline.
Ethereum Also Shows Signs of Improvement
Ethereum is also starting to show some positive signals.
During the recent market decline, many Ethereum investors sold their holdings at a loss because of fear. This pushed one important market indicator into what analysts call a capitulation phase, which usually means investors are under strong pressure.
By late March, that indicator started improving, showing that market confidence may slowly be returning.
Another positive sign is that the amount of stablecoins held on the Ethereum network remains near record levels. At the same time, more real-world assets are being moved onto the blockchain through Ethereum, which suggests larger investors still see long-term value in the network.
Stablecoins Show Investors Are Still Waiting
One of the clearest signs in the report comes from stablecoins.
The total value of stablecoins grew from about $308 billion to nearly $318 billion in the first quarter, even as the overall crypto market moved lower.
Stablecoins are often used by investors as a safe place to hold money inside the crypto market. When people sell cryptocurrencies but keep their funds in stablecoins, it usually means they have not completely left the market.
Instead, many investors may simply be waiting for better market conditions before buying again. If confidence returns, that money could quickly flow back into crypto and help support prices.
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Investors See Value but Stay Defensive
A recent investor survey in the report showed an interesting trend.
Many large investors believe the crypto market is still going through a weak period. At the same time most of them also think Bitcoin is currently priced lower than its real value according to AlmostSatoshi.
This means professional investors still see long-term potential in crypto but they are being careful because of ongoing economic uncertainty.
Right now the market may be starting to stabilize but a stronger recovery could depend on whether the global economy avoids a deeper slowdown.
