According to a research report published by Coinbase, the Bitcoin and altcoin market may rise in the next second quarter. The report states that the previously identified obstacles have largely disappeared and several factors that will positively affect the market have come to the fore.
Bitcoin halving expectation
Coinbase (COIN) said in a research report that the crypto market is poised for a positive second quarter after most of the previously identified negatives. Coinbase said these positive factors “may reveal themselves more clearly starting in the second half of April.” The report stated that the Bitcoin (BTC) halving, expected on April 16-20, continues to be the main supply-side event. cryptokoin.com As we reported, the four-year halving means miner rewards will be reduced by 50%, thus reducing the growth rate of Bitcoin supply.
“On the demand side, the 90-day review period that many banks use when conducting due diligence on new financial offerings such as spot Bitcoin exchange-traded funds (ETFs) could conclude as early as April 10,” analysts David Duong and David wrote. Said. Coinbase notes that banks such as Morgan Stanley (MS), Bank of America (BAC), UBS (UBS) and Goldman Sachs (GS) are “not the sole gatekeepers of wealth” and that some major US asset management platforms operate outside of them.
Institutional interest and derivatives
According to Coinbase’s report, institutional investors’ interest in the cryptocurrency market continues to be high. Highly leveraged short positions in Chicago Mercantile Exchange (CME) Bitcoin futures contracts are interpreted as an indicator of this interest. Additionally, the total value locked (TVL) in on-chain derivatives reached a new peak of $3.4 billion, indicating increased confidence in the market.
Talked about the leading altcoin Ethereum
On the other hand, Alesya Haas, Coinbase’s chief financial officer, shared the reasons for the last bull cycle and her views on regulations in an interview with Fortune. Haas described the rise in Bitcoin’s price as a natural development and noted that the entry of spot Bitcoin ETFs into the market played an important role. Haas emphasized that Ethereum is not a security and that comprehensive regulation of the cryptocurrency market is needed in the USA.
He argued that regulations should protect both investors and cryptocurrency companies and encourage innovation. Coinbase’s report and Haas’ statements show that the cryptocurrency market may rise in the next second quarter. Factors such as halving, spot Bitcoin ETFs, and interest from institutional investors seem to have a positive impact on the market. Elimination of uncertainties regarding regulations may also increase confidence in the market.
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