Coinbase analysts stay optimistic for the fourth quarter, arguing that a mixture of resilient liquidity, a good macro backdrop and supportive regulatory alerts may maintain the crypto market rally alive.
Bitcoin , they argue, continues to learn from macro tailwinds and will outperform market expectations, analysts David Duong and Colin Basco mentioned in a Wednesday report.
“Barring a shock to power costs we expect the rapid danger to disrupting the present U.S. financial coverage path is definitely fairly low,” the analysts wrote. On-chain demand from digital asset treasuries (DATs) can also be anticipated to supply a ground for costs.
One lingering concern for traders is seasonality, the report mentioned, noting six straight September declines for BTC in opposition to the greenback between 2017 and 2022.
However this sample did not play out in each 2023 and 2024, the analysts famous. Not solely that, however the small pattern dimension and vast dispersion of outcomes restrict the usefulness of seasonal indicators.
A extra significant issue, Coinbase mentioned, is the place we’re within the DAT cycle. Publicly disclosed DATs maintain over 1 million BTC ($110 billion), 4.9 million ETH ($21.3 billion) and eight.9 million SOL ($1.8 billion) as of Sept. 10.
Late entrants at the moment are chasing altcoins additional down the danger curve, which Coinbase believes places markets in a “player-versus-player” part, a dynamic that favors large-cap tokens however might quickly result in consolidation amongst smaller DAT gamers.
Heading into the ultimate quarter, the alternate’s analysts maintained a constructive outlook, anticipating robust liquidity, a good macroeconomic backdrop and regulatory momentum to maintain crypto markets effectively supported.
Learn extra: Crypto Institutional Adoption Seems to Be within the Early Phases: JPMorgan
