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Cryptocurrency giant Coinbase issues bearish warning
Alex Dobnya
According to Coinbase researchers, you shouldn’t expect a strong cryptocurrency rally in the third quarter of the year
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Coinbase researchers David Duong and David Han have expected that a major cryptocurrency rally is unlikely to occur in Q3 2024.
Analysts believe that price action will be “unstable” during the current quarter.
This forecast is based on the fact that there are no convincing bullish ideas capable of supporting the market.
There is a lot of uncertainty surrounding the long-awaited launch of more Ethereum spot exchange-traded funds (ETFs). If these products experience disappointing inflows, their underperformance could emerge as another bearish catalyst for the market. As rreported by U.TodayEthereum ETFs are expected to be registered in July.
After a period of volatility over the next two months, Coinbase researchers expect the market to improve this fall.
Duong and Han also pointed to recent reports that the U.S. economy could slide into recession. These concerns are not unfounded, as recent macro data has clearly shown that the U.S. economy is cooling. Due to fears of economic trouble, retail investors are unlikely to buy altcoins, according to Coinbase.
On the bright side, researchers believe the U.S. Federal Reserve’s rate cut this year could bode well for the market.
AS reported by U.TodayU.S. inflation came in weaker than expected in June. Now, the Fed may end up cutting rates several more times this year to prevent a sharp slowdown in economic activity.
Some analysts, such as Fundstrat’s Tom Lee, predict that Bitcoin will see a strong recovery in the second half of the year due to falling inflation.
About the author
Alex Dobnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything from price analysis to Blockchain disruption. Alex has written over 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets, and can be reached at alex.dovbnya@u.today.