Talk is growing that bitcoin is entering a phase of building a short-term bottom, but its rebound has yet to be confirmed as risks remain. Coinbase Institutional and Glassnode said major cryptocurrencies may recover later in the second quarter, and surveys showed investors see bitcoin as undervalued. Some analysts highlighted $79,000 as a cost basis level and $65,000 as key support, while others warned of May declines and heightened volatility.

Crypto markets are in another winter, with prices falling for six months and firms shifting strategies or cutting jobs. Regulatory uncertainty persists in the United States, with progress on stablecoin rules but tougher prospects for a broader market-clarity bill. Bitcoin and other tokens have slid, and monthly trading volumes have dropped to the lowest since January 2024. DeFi lending yields have also fallen. Exchanges are restructuring and expanding into prediction markets and traditional assets, sometimes partnering with stock exchanges.