Coinbase predicts volatile Q3 trends for cryptocurrencies still lacking strong narratives

Coinbase predicts volatile Q3 trends for cryptocurrencies still lacking strong narratives

Coinbase predicts volatile Q3 trends for cryptocurrencies still lacking strong narratives

Coinbase’s institutional division believes that due to the lack of a strong narrative in the cryptocurrency market, there may be more volatility in the next two months.

In its weekly market commentary released last Friday (12th), Coinbase stated that an increasing number of reports express concerns about the United States possibly entering an economic recession later this year or in early 2025. Macro data has provided ample evidence of a slowdown in the US economy (ISM Manufacturing Index, unemployment rate, domestic demand, etc.), and “we believe the economy is likely to peak in the second quarter of 2024.”

However, Coinbase believes that as long as the economy remains stable, bullish catalysts will emerge. Its report stated that the third quarter’s trend is expected to be “volatile.”

Coinbase also stated that it is currently uncertain how traders will react to the approval of Ether spot ETFs in the short term, but the exchange believes that the launch of Ether ETFs will be bullish for Ether (ETH) in the long run.

Coinbase also expects significant price fluctuations in the cryptocurrency market in the coming months before a clear trend forms. Its report stated:

The President of The ETF Store, Nate Geraci, speculates that the Ether spot ETF could be approved this week. He recently stated on X platform, “I don’t know any specific details, but I can’t think of any further justifiable reasons for delaying it.”