Coinbase Institutional’s latest report predicts a favorable fourth quarter for Bitcoin in 2024, driven by potential U.S. rate cuts and substantial Chinese monetary stimulus. The report highlights challenges for Ethereum, particularly rising transaction fees and limited advantages from U.S. spot ETH ETFs, while expressing overall market optimism due to supportive economic conditions and the growth of alternative networks like Solana.

Coinbase Institutional’s recent report expresses a positive outlook for the cryptocurrency market, particularly for Bitcoin, predicating that anticipated U.S. rate cuts and China’s monetary stimulus measures will bolster Bitcoin’s performance in the fourth quarter of 2024. The report underscores the resilience of Bitcoin, while also acknowledging challenges faced by Ethereum, including soaring transaction fees and a lack of significant benefits from the recent introduction of U.S. spot exchange-traded funds (ETFs). The report, co-authored by David Duong, Head of Institutional Research, and David Han, Institutional Research Analyst, encapsulates key insights derived from the significant Token2049 and Solana Breakpoint conferences held in Singapore. They articulate, “We anticipate a constructive Q4 2024 due to US rate cuts and significant fiscal and monetary stimulus from China, which should enhance market liquidity and support BTC performance.” Despite Ethereum’s robust on-chain activity indicated by the rising volume on decentralized exchanges (DEXs) and escalating Ethereum gas prices, the asset has not experienced the bullish momentum that many market participants expected following the launch of spot ETH ETFs. The authors noted, “Although many market players were bullish on BTC, we encountered a few skeptics on ETH, as the token appears to not have benefited from the launch of spot ETH ETFs in the US over two months ago.” This skepticism concerning Ethereum juxtaposes the prevailing excitement surrounding Bitcoin and alternative blockchain networks like Solana, which is intensifying its efforts to augment its ecosystem through innovative product offerings and partnerships. In broader terms, the report highlights that, despite some apprehensions about Ethereum’s immediate performance, the overall market conditions are favorable. These prospects are enhanced by substantial fiscal measures enacted in China and positive advancements within the U.S. economic landscape. Emerging layer-1 networks, including Solana, are increasingly encroaching upon Ethereum’s market share, emphasizing the essentiality of scalability and transaction efficiency. The growth of decentralized exchanges and advancements in blockchain infrastructures are promising indicators for the evolution of the cryptocurrency industry as a whole.

In recent years, the cryptocurrency market has undergone significant transformations, with Bitcoin maintaining its position as a leading digital asset. Various factors, including macroeconomic policies, such as interest rate changes by the Federal Reserve in the United States, alongside monetary policies in China, play critical roles in shaping market dynamics. Furthermore, Ethereum’s ecosystem has been under scrutiny, particularly with respect to transaction fees and competition from other blockchain networks. The introduction of spot ETFs is a significant development in the regulatory landscape for cryptocurrencies, encouraging institutional investment, yet the impact on different cryptocurrencies has varied. This report highlights these ongoing trends and their implications for Q4 2024.

The report from Coinbase Institutional reflects a cautiously optimistic outlook for Bitcoin, driven largely by anticipated U.S. rate cuts and fiscal stimulus from China. While Ethereum faces struggles with rising costs and competition, the overall sentiment in the cryptocurrency market remains promising. The emergence of alternative blockchain networks and enhancements in decentralized finance infrastructure suggest that, despite challenges, the sector is poised for growth in the coming months.

Original Source: news.bitcoin.com

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