Coinbase Institutional’s report shows optimism about the cryptocurrency market, fueled by expectations of interest rate cuts in the US and fiscal stimulus from China, which could help improve bitcoin’s performance in Q4 2024. While bitcoin remains strong, ethereum is facing challenges from rising transaction fees and limited access to exchange-traded funds (ETFs) in the US.
Coinbase: “We Expect a Positive Q4 2024”
On Friday, Coinbase Institutional released its latest report titled “Token2049 Takeaways.” The report was co-authored by David Duong, Head of Institutional Research, and David Han, Institutional Research Analyst. The report summarizes key insights from the Token2049 and Solana Breakpoint conferences, which took place in Singapore. They write:
“We expect Q4 2024 to be positive on the back of US rate cuts and significant fiscal and monetary stimulus from China, which are expected to boost market liquidity and support BTC performance.”
The report focuses on bitcoin and high-beta crypto assets, with a strong outlook for the market in the coming months.
Ethereum’s recent struggles, particularly rising transaction fees, are also mentioned. The report notes: “On-chain activity is increasing, with increased decentralized exchange (DEX) volumes and higher Ethereum gas prices.” However, despite the launch of ETH spot ETFs in the US, the token has yet to see the same benefits as bitcoin. The report said:
“While many investors in the market are bullish on BTC, we have encountered some skepticism about ETH, as the token has not yet benefited from the launch of physical ETH ETFs in the US over two months ago.”
This skepticism contrasts with the excitement around bitcoin and alternative networks like Solana, where the ecosystem is expanding rapidly with new products and partnerships.
Despite some concerns about Ethereum’s performance, the broader crypto market is still expected to grow strongly. This optimism is fueled by large-scale fiscal and monetary stimulus from China, as well as favorable economic conditions in the US. Solana and other emerging layer-1 networks are gradually challenging Ethereum’s dominance, with much of the focus on scalability and transaction efficiency. The growth of decentralized exchanges (DEXs) coupled with improvements in blockchain infrastructure are signaling promising developments for the entire cryptocurrency space.
