The institutional division of the US cryptocurrency exchange Coinbase 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 its weekly market commentary released last Friday (12th), Coinbase stated that an increasing number of reports express concerns about the US possibly entering an economic recession later this year or early 2025. Macro data has provided ample evidence of the slowdown in the US economy, including the ISM Manufacturing Index, unemployment rate, and domestic demand. “We believe the economy is likely to peak in the second quarter of 2024.”
However, Coinbase believes that as long as the economy remains stable, bullish catalysts will emerge. The report states, “The trend is expected to be volatile in the third quarter.”
Coinbase also states that it is currently uncertain how traders will react to the approval of an Ethereum spot exchange-traded fund (ETF) in the short term, but the exchange believes that the launch of an Ethereum ETF is a long-term bullish signal for Ethereum (ETH).
Coinbase also expects cryptocurrency prices to experience significant volatility in the coming months before forming a clear trend. The report states, “The President of The ETF Store, Nate Geraci, speculates that an Ethereum spot ETF may be approved this week. Earlier today, he stated on X platform, ‘I don’t know any specific circumstances, I just can’t think of any further justification for delay.'”
