Coinbase Research: Macroeconomic instability, heavy market pressure in the coming weeks
A new report from Coinbase Research points out that macroeconomic pressures have had a heavy impact on the cryptocurrency market. Analysts predict that the market will remain fragile in the coming weeks due to a lack of catalysts that can drive up prices. This makes many investors feel uneasy because the global economic environment is changing.
The influence of macro factors
The report emphasizes the increasing dependence of the cryptocurrency market on broader economic events. Recently, the decision of the Bank of Japan to raise interest rates has been seen as a catalyst for lifting yen arbitrage trading, which has had an impact on global markets. In addition, the renewed geopolitical tensions in the Middle East have also raised concerns about oil supply, further exacerbating market instability. These macro pressures truly affect investors' emotions and market stability.
Coinbase analysts point out that leverage in the on chain spot market has significantly decreased, which may mean that the recent sharp decline has made investors more cautious. They believe that due to the lack of a clear catalyst at present, the price trend of cryptocurrencies will continue to be dominated by macroeconomic factors in the short term.
Third quarter strategy
Looking ahead, Coinbase has taken a cautious stance in the third quarter of 2024. The company's outlook is mainly based on the upcoming release of US inflation data, which may affect market sentiment. If inflation data is better than expected, it may boost confidence; But if the data is not ideal, investors' confidence in cryptocurrency may be further undermined.
However, analysts are not entirely pessimistic. They stated that if the US economy recovers, token valuations may rebound. Even some analysts assume that if macroeconomic conditions remain stable, Bitcoin is expected to reach a historic high later this year. These different perspectives reflect the uncertainty of the current cryptocurrency market.
