Crypto Markets Likely to Remain Choppy in Q3, Coinbase Analysts Say

Coinbase analysts predict that the crypto market will experience choppy price action in Q3 2024, influenced by several market factors. This article delves into the analysts’ perspectives and the potential market trends for the remainder of the quarter.

Points

• Market Outlook: Predictions for choppy price action in Q3 2024.
• Influencing Factors: Key factors impacting the crypto market, including interest rate decisions and miner activities.
• Future Projections: Analysts’ expectations for market improvement in Q4 2024.
• Investment Considerations: Potential implications for investors.

Coinbase analysts have shared their outlook for the crypto market in Q3 2024, predicting continued choppy price action. The third quarter started on a sour note, influenced by several market factors, including interest rate decisions, miner capitulation, and significant selling by government-controlled wallets.

Q3 Started on a Sour Note

The crypto market experienced a bullish trend earlier this year, driven by the spot Bitcoin ETF narrative, with Bitcoin reaching a new all-time high above $73,000. However, Q2 saw broader market struggles due to multiple headwinds, extending into the third quarter. Analysts at Coinbase noted that supply overhangs from indiscriminate Bitcoin selling by entities like the German government’s Bundeskriminalamt （BKA） have added to the market pressure.

“The third quarter started on a sour note with supply overhangs generated by indiscriminate Bitcoin selling from price-insensitive sources. That includes the German government’s Bundeskriminalamt （BKA）, which began selling their supply of seized Bitcoin on June 19,” the analysts said.

Analysts Have a Bullish Perspective for Q4

Despite the current market uncertainty, Coinbase analysts maintain a bullish outlook for Q4 2024. Key developments, such as the SEC’s approval of spot ETH ETFs and recent SOL ETF applications, are expected to positively impact the market. Although there is uncertainty about whether ETH ETF flows will be bullish or bearish, analysts believe the outlook is unlikely to be negative from a positioning perspective.

“This could leave room for surprise outperformance and offer ETH more support, even if the flows take time to materialize. Overall, we believe the next two months are likely to produce more volatility before things start to improve more earnestly in late September,” the analysts added.

Looking ahead to the fourth quarter, potential interest rate cuts and the US election in November could significantly impact the market. Fiscal expansion, regardless of the election outcome, could position Bitcoin as a strong buy at current levels, particularly as an alternative to traditional finance.

Conclusion

While Q3 2024 is expected to remain choppy, Coinbase analysts anticipate market improvement in Q4, driven by key developments and potential fiscal expansion. Investors should prepare for continued volatility but can look forward to a more positive outlook towards the end of the year.

解説

• Market Volatility: Continued choppy price action expected in Q3 2024 due to various market factors.
• Key Developments: Potential positive impact of SEC’s approval of spot ETH ETFs and other developments in Q4.
• Future Outlook: Analysts’ bullish perspective for market improvement in Q4 2024.
• Investment Strategies: Considerations for investors in navigating the current market volatility and preparing for potential opportunities in Q4.