Crypto Market Outlook for Q3 2024: Coinbase Institutional Predicts More Consolidation and Volatility

The institutional arm of US-based digital asset exchange platform Coinbase is warning crypto investors to brace themselves for more consolidation in the market this quarter. According to new research by Coinbase Institutional, traders are expressing concerns about a potential recession in the US economy.

Despite these worries, Coinbase remains optimistic about bullish catalysts on the horizon as long as the economy remains stable. The company believes that if the economy continues to perform well, a Federal Reserve cut could unlock more liquidity and attract more retail participation in the market. Additionally, with the upcoming US election in November, fiscal expansion is expected regardless of the outcome, providing a strong incentive for investors to consider Bitcoin as an alternative to traditional financial systems.

Coinbase also highlights the uncertainty surrounding traders’ reactions to the approval of Ethereum exchange-traded funds (ETFs) in the short term. However, the company views the launch of Ethereum ETFs as a long-term bullish indicator for the leading altcoin.

In terms of price action, Coinbase anticipates that the crypto market will experience volatile swings in the next couple of months before establishing a clear trend. The company suggests that the lack of strong narratives in the market could lead to surprise outperformance and offer support for Ethereum, especially as potential spot ETH ETF flows materialize.

At the time of writing, Ethereum is trading for $3,205, marking a more than 2% increase in the past day. Coinbase expects more volatility in the market over the next two months before a more significant improvement in late September.

Overall, Coinbase’s insights provide valuable perspectives for crypto investors navigating the current market conditions and looking ahead to potential opportunities for growth and stability in the digital asset space.