Crypto Bull Market Still Has Room to Run, Coinbase Says

Coinbase analysts remain optimistic for the fourth quarter, arguing that a mix of resilient liquidity, a favorable macro backdrop and supportive regulatory signals could keep the crypto market rally ￰0￱ (BTC), they argue, continues to benefit from macro tailwinds and could outperform market expectations, analysts David Duong and Colin Basco said in a Wednesday report. “Barring a shock to energy prices we think the immediate risk to disrupting the current ￰1￱ policy path is actually quite low,” the analysts wrote. On-chain demand from digital asset treasuries (DATs) is also expected to provide a floor for ￰2￱ lingering concern for investors is seasonality, the report said, noting six straight September declines for BTC against the dollar between 2017 and ￰3￱ this pattern failed to play out in both 2023 and 2024, the analysts ￰4￱ only that, but the small sample size and wide dispersion of outcomes limit the usefulness of seasonal indicators.

A more meaningful factor, Coinbase said, is where we are in the DAT ￰5￱ disclosed DATs hold over 1 million BTC ($110 billion), 4.9 million ETH ($21.3 billion) and 8.9 million SOL ($1.8 billion) as of ￰6￱ entrants are now chasing altcoins further down the risk curve, which Coinbase believes puts markets in a “player-versus-player” phase, a dynamic that favors large-cap tokens but may soon lead to consolidation among smaller DAT ￰7￱ into the final quarter, the exchange's analysts maintained a constructive outlook, expecting strong liquidity, a favorable macroeconomic backdrop and regulatory momentum to keep crypto markets well ￰8￱ more: Crypto Institutional Adoption Appears to Be in the Early Phases: JPMorgan