Crypto News – Coinbase (COIN) said in a research report published on Friday that the cryptocurrency market is poised for a strong second quarter and that many of the previously mentioned challenges are behind it.
Coinbase Weekly Report: Crypto Market Outlook Looks More Positive in Q2
Coinbase stated that these favorable circumstances might only become more apparent in the second half of April. According to the research, the primary supply-side event is still the anticipated halving of bitcoin on April 16–20. Miner incentives are cut by 50% during the quadrennial halving, which slows the rate at which the supply of bitcoin is increasing.
On the demand side, the 90-day review period that many wirehouses employ when conducting due diligence on new financial offerings – like spot bitcoin exchange-traded funds (ETFs) – could conclude as early as April 10,
analysts David Duong and David Han
Institutional Interest in the Market is Still High, According to the Report
The degree of leveraged short positions in Chicago Mercantile Exchange (CME) bitcoin futures, which surged to a new high on March 19, was used by the report to demonstrate that institutional interest in the market is still significant. Even if the overall total value locked (TVL) in decentralized finance (DeFi) is still roughly 50% behind its prior cycle highs, the report also noted that the TVL in on-chain derivatives has reached an all-time high of $3.4 billion.
%s Comment