Coinbase Predicts 'Constructive Q4 2024' as Rate Cuts and China's Stimulus Boost Bitcoin's Outlook

Coinbase Institutional published its latest “Takeaways from Token2049” on Friday. The report, co-authored by David Duong, Head of Institutional Research, and David Han, Institutional Research Analyst, summarized key insights from the Token2049 and Solana Breakpoint conferences, which were held in Singapore.

Coinbase Institutional shared its observations from the Token2049 and Solana Breakpoint conferences in a report titled “Takeaways from Token2049.” The report highlights optimism for the crypto market, driven by expectations of U.S. rate cuts and China’s monetary stimulus, which could boost bitcoin’s performance in Q4 2024.

Coinbase Anticipates a Constructive Q4 2024

Coinbase Institutional’s latest report, co-authored by David Duong, Head of Institutional Research, and David Han, Institutional Research Analyst, summarizes the key takeaways from the Token2049 and Solana Breakpoint conferences, which were held in Singapore.

The report focuses on bitcoin and high-beta crypto assets, expressing strong optimism for the market in the upcoming months. “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,” the report states.

Coinbase Highlights Bitcoin Strength, Ethereum Challenges

The report discusses bitcoin’s strength and resilience, highlighting the anticipation of U.S. rate cuts and China’s stimulus measures, which are expected to boost bitcoin’s performance in Q4 2024. However, the report also points out challenges faced by ethereum, including rising transaction fees and a limited impact from the U.S. spot exchange-traded funds (ETFs).

“Onchain activity is growing, with rising DEX volumes and higher Ethereum gas prices,” the report notes. “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.”

Coinbase observed skepticism among some market participants regarding ethereum’s performance, contrasting it with the excitement surrounding bitcoin and alternative networks like Solana, which is rapidly expanding its ecosystem with new products and partnerships.

Despite some concerns about ethereum’s performance, the broader crypto market remains well-positioned for growth, according to Coinbase. This optimism is fueled by China’s massive fiscal and monetary stimulus and supportive U.S. economic conditions. Solana and other emerging layer-1 networks are increasingly challenging ethereum’s dominance, with more attention being paid to scalability and transaction efficiency. The rise of decentralized exchanges (DEXs), along with improvements in blockchain infrastructure, signal promising developments for the crypto space as a whole.