The institutional division of Coinbase, a US cryptocurrency exchange, believes that due to the lack of a strong narrative in the cryptocurrency market, there may be more volatility in the next two months.
In the weekly market commentary released by Coinbase last Friday (12th), it stated that an increasing number of reports express concerns about the possibility of the US entering an economic recession later this year or in early 2025. Macro data has provided substantial evidence that the US economy has slowed down (ISM Manufacturing Index, unemployment rate, domestic demand, etc.), and “we believe that the economy is highly likely to peak in the second quarter of 2024.”
However, Coinbase believes that as long as the economy remains stable, bullish catalysts will emerge. Their report stated that the trend in the third quarter is expected to be “volatile and changeable.”
Coinbase also stated that it is currently uncertain how traders will react to the approval of the Ether spot trading exchange-traded fund (ETF) in the short term, but the exchange believes that the launch of an Ether ETF is a long-term bullish sign for Ether (ETH).
Coinbase also expects that cryptocurrencies will start to experience drastic price fluctuations in the coming months before forming a clear trend. Their report stated:
“The President of The ETF Store, Nate Geraci, speculates that the Ether spot ETF may be approved this week. He stated earlier today on the X platform, ‘I don’t know any specific circumstances, I just can’t think of any valid reason for further delays.'”