Crypto Bull Run: Coinbase Predicts Q4 Market Strength
Coinbase: Crypto Market Rally Poised to Continue
Coinbase analysts are optimistic about the cryptocurrency market's performance in the fourth quarter. Their analysis points to several factors that could sustain the current rally, including solid liquidity, a supportive macroeconomic backdrop, and positive regulatory developments.
Key Factors Supporting Market Strength
- Macroeconomic Tailwinds: Bitcoin is expected to benefit from ongoing macroeconomic trends.
- On-Chain Demand: Demand from digital asset treasuries (DATs) is likely to establish a price floor.
- Resilient Liquidity: Strong liquidity continues to bolster the market.
Analysts David Duong and Colin Basco noted in their recent report that barring unforeseen shocks to energy prices, the U.S. monetary policy path remains relatively stable.
Seasonality Concerns Addressed
While historical data shows September declines for Bitcoin between 2017 and 2022, this pattern did not hold in 2023 and 2024. The analysts emphasize that the limited sample size diminishes the reliability of seasonal indicators.
DAT Cycle Insights
As of September 10, publicly disclosed DATs hold significant amounts of cryptocurrency:
- Over 1 million BTC ($110 billion)
- 4.9 million ETH ($21.3 billion)
- 8.9 million SOL ($1.8 billion)
Coinbase suggests the current market phase is "player-versus-player," favoring large-cap tokens but potentially leading to consolidation among smaller DAT players.
Optimistic Q4 Outlook
Coinbase analysts maintain a positive outlook for the final quarter, anticipating that strong liquidity, a favorable macroeconomic environment, and regulatory momentum will provide substantial support to cryptocurrency markets.