The leading US-based crypto exchange, Coinbase, has expressed its optimism about the future potential of digital assets, predicting significant rallies in the coming months. In a recent research report by Coinbase Institutional, the exchange highlights the current macroeconomic conditions that indicate a favorable environment for Bitcoin (BTC) and other cryptocurrencies to experience a surge in the fourth quarter of the year.
According to Coinbase, the Federal Reserve and the People’s Bank of China (PBOC) have adopted looser monetary policies, a factor historically known to support higher crypto prices. The exchange emphasizes that these policy changes, along with other idiosyncratic factors, contribute to their positive outlook for the crypto market in the near future.
The report mentions the recent decision by the Fed to cut interest rates by 50 basis points, which has paved the way for other monetary authorities to implement stimulative measures. Additionally, China has unveiled a substantial fiscal and monetary stimulus package, including a record rate cut and measures to boost lending and reduce existing loan burdens.
Despite signs of softening in the labor market, Coinbase notes that the US economy remains resilient, with second-quarter GDP figures surpassing expectations. The exchange observes a strong correlation between the crypto market and the stock market, indicating that Bitcoin and other digital assets may follow the S&P 500’s upward trajectory towards new record highs.
As of the time of writing, Bitcoin is trading at $65,846, reflecting the positive sentiment and potential for growth in the crypto market. Coinbase suggests that key metrics such as stable funding rates and near-average open interest levels indicate a robust market poised for further growth, especially as October historically sees positive price movements for BTC.
To stay updated on the latest developments in the crypto market, Coinbase recommends subscribing to email alerts and following their social media channels for real-time updates. The exchange also encourages readers to monitor price action and stay informed about market trends to make informed investment decisions.
In conclusion, Coinbase’s research report underscores the potential for significant price rallies in the crypto market in the coming months, driven by favorable macroeconomic conditions and global monetary policies. Investors are advised to stay vigilant and capitalize on the opportunities presented by the evolving market dynamics.