Coinbase Predicts Bitcoin to Surge in Q4 Thanks to US Rate Cuts and China Stimulus
Coinbase Institutional’s report highlights optimism for the cryptocurrency market, fueled by expectations of U.S. interest rate cuts and Chinese monetary stimulus, which could boost bitcoin’s performance in Q4 2024. While bitcoin remains strong, ethereum faces challenges with rising transaction fees and limited impact from U.S. spot exchange-traded funds (ETFs).
Coinbase: 'We anticipate a constructive Q4 2024'
Coinbase Institutional published “Latest Takeaways from Token2049” on Friday. The report, co-authored by David Duong, Head of Institutional Research, and David Han, Institutional Research Analyst, summarized key insights from the Token2049 and Solana Breakpoint conferences held in Singapore. They wrote:
We expect Q4 2024 to be positive due to US rate cuts and significant fiscal and monetary stimulus from China, which should boost market liquidity and support BTC performance.
The report focuses on bitcoin and high-beta crypto assets, with an overall positive outlook for the market in the coming months.
Ethereum’s recent struggles, particularly high transaction fees, are also discussed. The report notes that “On-chain activity is increasing, with increased DEX volume and higher Ethereum gas prices.” However, despite the recent launch of a spot ETH ETF in the United States, the token has yet to see the same benefits as bitcoin. The report describes:
While many market players are bullish on BTC, we still encounter some skepticism about ETH, as the token does not seem to benefit from the launch of a physical ETH ETF in the United States more than two months ago.
This skepticism contrasts with the excitement around bitcoin and alternative networks like Solana, which is rapidly expanding its ecosystem with new products and partnerships.
Despite some concerns about Ethereum’s performance, the overall cryptocurrency market remains well-positioned for growth. This optimism is fueled by China’s massive fiscal and monetary stimulus and supportive economic conditions in the United States. Solana and other emerging layer-1 networks are increasingly challenging Ethereum’s dominance, with increased attention paid to scalability and transaction efficiency. The rise of decentralized exchanges (DEXs), coupled with improvements in blockchain infrastructure, signal promising developments for the entire cryptocurrency space.
What do you think about Coinbase's outlook for bitcoin and Ethereum? Let us know in the comments below.
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