Keith Grose, CEO of Coinbase UK, attributes the current crypto market downturn to macroeconomic “jitters” linked to fears about an AI bubble and a risk‑off environment, and maintains that it is a “recalibration, not a reversal”. The correction coincides with Bitcoin below $90,000 and the loss of around $1.2 trillion in market capitalization since October 7, 2025.
Grose said the pullback is mainly a response to a less favorable global environment for risk assets, partly due to a reset of expectations around rate cuts: the probability of a Federal Reserve rate cut fell from 62.9% to 52.1%. That evaporation of relative liquidity typically hits higher‑growth assets first, including cryptoassets, and has fueled concurrent selling in tech stocks and crypto‑linked securities, reinforcing the “risk‑off” bias.
In parallel, on‑chain and market metrics show significant deterioration. The CryptoQuant Bull Score Index fell to 20 out of 100, a level associated with extremely bearish conditions; this index summarizes market sentiment and conditions. CryptoQuant attributes the reading to a drop in spot demand, a shift toward negative momentum and a slowdown in the growth of stablecoin liquidity, as well as the breach of Bitcoin’s 365‑day moving average, a technical signal used to assess the one‑year trend.
From the technical and flows analysis, ActivTrades, through analyst Carolane De Palmas, points to an “acute deterioration in market structure” and recalls the flash crash on October 10, when Bitcoin fell from $122,500 to $104,600, an event that forced liquidations and knocked out leveraged long positions; De Palmas also observes sales by long‑term holders and institutional treasuries that exacerbate selling pressure.
Coinbase response and regulatory framework
Coinbase has responded by expanding its presence in the United Kingdom and prioritizing regulated products designed to withstand adverse cycles; among them is a GBP savings product for British customers that seeks to offer a conservative alternative for managing balances in a volatile context. Grose emphasized that the industry continues to advance in regulatory clarity, infrastructure development and institutional participation, key pillars to sustain adoption.
Brian Armstrong, Coinbase’s global CEO, highlighted the pace of project creation in the ecosystem and expressed confidence in the progress of future legislation; additionally, the company reinforced its infrastructure strategy through acquisitions, including the purchase of Echo for $375 million. According to the company, the search for more comprehensive regulatory frameworks for stablecoins and other assets is a pillar for moving from a speculative market to one with greater capacity for institutional integration.
The dominant narrative combines a macroeconomic shock with technical signals and institutional deleveraging; for traders, monitoring the CryptoQuant Bull Score and the price’s evolution relative to the 365‑day moving average will be key milestones to assess whether the correction stabilizes or extends.
