HomeCrypto NewsPredictions for the Crypto Market in Q3 amidst Bitcoin Sales and Federal...

Predictions for the Crypto Market in Q3 amidst Bitcoin Sales and Federal Rate Cuts


Coinbase Market Commentary: German Government Empties Bitcoin Holdings, Uncertainty More Damaging Than Actual Selling, Rate Cuts May Not Be Bullish, Key Takeaways from EthCC

The German Government’s recent decision to empty all its Bitcoin holdings has sent ripples through the cryptocurrency market, with Coinbase noting that this move could help alleviate some of the supply overhangs that have been putting pressure on Bitcoin prices. In its weekly market commentary, Coinbase highlighted the impact of indiscriminate Bitcoin selling from sources like the German government at the start of Q3, which has contributed to market uncertainty.

The Mt. Gox repayments that began on July 5 have also been a factor in market dynamics, with Coinbase pointing out that the uncertainty surrounding how much of the repaid BTC is being sold is more damaging than the actual selling itself. Additionally, concerns about a potential recession in the US later this year or in early 2025 have added to market jitters, with Coinbase noting that macro data suggests the US economy may have peaked in the second quarter of 2024.

Looking ahead, Coinbase anticipates that the price action in the crypto market will remain choppy in the third quarter of 2024 as strong narratives are lacking. The upcoming US elections in November bring the possibility of fiscal expansion, which could incentivize investors to buy Bitcoin as an alternative to the traditional financial system.

At the recent Ethereum Community Conference (EthCC), key technical themes such as layer-2 scaling, ETH staking issuance, and cross-chain interoperability were discussed, reaffirming Ethereum’s roadmap as a secure settlement layer for various L2 solutions. Overall, the market remains uncertain, but opportunities for surprise outperformance may arise as the crypto landscape continues to evolve.

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