Crypto Price Prediction 2025: Coinbase Predicts Crypto Rebound by Mid-2025 After Tariff Turmoil

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The second quarter of 2025 began with a shakeup for the crypto market, as President Donald Trump’s new tariff policies have already sent shockwaves through global financial systems. These tariffs, which could lead to fresh trade tensions with China post the 90-day pause, are creating panic among investors. 

However, the expectations of a crypto-friendly president failed to boost the market. In Q1, Ether dropped by 40%, while Bitcoin fell to $78,000 before recovering slightly. 

Short-Term Pain, But Hope in Sight

According to Coinbase’s Monthly Outlook for April, this turbulence may continue for a few more weeks. The exchange expects continued market pressure through April to mid-May, fueled by the tariff war and tighter financial policies. 

Risky assets like cryptocurrencies were the first to be hit, causing prices to dip sharply. Bitcoin and the broader COIN50 index dropped below their key 200-day moving averages, a sign many traders take as the beginning of a bearish phase. To make matters worse, the Fear & Greed Index, a tool that measures market sentiment, showed “Extreme Fear,” reflecting the uneasy mood across markets.

Crypto Relief Rally in May or June?

However, the report is not all negative. Coinbase believes the market could find its ground by mid-to-late Q2, around May or June. This isn’t the first time the market has gone through such a cycle. Back in 2020, for instance, Bitcoin crashed in March but found some stability by May, setting the stage for a major rally later that year. The same could happen again in 2025, with investors potentially seeing the current dip as a buying opportunity once the dust settles.

Crypto analyst Matt Hougan also believes the market will improve in Q2. Bitcoin and Ether dropped sharply in Q1, even though this period is usually strong for both. Hougan says the rise in global money supply, looser monetary policies, and clearer crypto regulations in the US could help prices go up. On top of that, global tensions and Trump’s new tariffs are pushing investors to rethink where they put their money. Hougan still thinks Bitcoin could hit $200,000 by the end of the year.

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Crypto Market Prediction Q3-2025

While Q2 may be a period of recovery, Q3 is where things could take off. Coinbase expects strong market growth in the second half of the year. A big part of that optimism comes from Bitcoin’s recent halving event, a process that historically leads to major price increases in the months that follow. 

In addition to that, institutional investors are becoming more active, especially with the launch of Bitcoin spot ETFs in the U.S., bringing in more stability and long-term interest. ARK Invest, in its Big Ideas 2025 report, predicts a breakout year for crypto, driven by increasing adoption and innovation. Coinbase also expects the regulatory environment in the U.S. to improve, which could help reduce fear and encourage more investors to enter the market.