Coinbase Research has released a recent report predicting a positive trajectory for cryptocurrency markets in the second half of 2025. The report highlights key factors driving this optimistic forecast.
Macroeconomic Fluctuations
The first quarter of the year was marked by market volatility due to a short-term contraction in U.S. GDP and trade disruptions. However, recent data suggests a recovery. For instance, Atlanta Fed's GDPNow tracking data rose to 3.8% quarter-on-quarter as of early June, a significant increase from earlier expectations.
Growing Institutional Interest in Digital Assets
The Coinbase report emphasizes that the weakening of the dollar's global dominance and Bitcoin's rise as an inflation hedge could foster increased interest in crypto. However, high long-term U.S. bond yields could limit this interest. The performance of altcoins will largely depend on specific catalysts such as ETF approvals or protocol developments.
Regulatory Developments
Significant steps are being taken on the regulatory front. The Senate recently sent the GENIUS Act, a stablecoin bill that passed with bipartisan support, to the House of Representatives. In addition, a more comprehensive market structure bill called the CLARITY Act is also on the agenda.
Overall, according to the Coinbase report, Bitcoin could perform strongly in the second half of the year, with macroeconomic and structural headwinds behind it. For altcoins, success will depend on navigating a more complex environment, including regulatory uncertainty and liquidity conditions.
