Analysts at Coinbase Institutional are expecting positive changes in the cryptocurrency market in the second half of 2023, driven by improved economic conditions in the US.
Coinbase's Predictions and Market Trends
According to a report by David Duong, head of global research at Coinbase, a positive trend in the cryptocurrency market is expected due to improved economic indicators in the US. Despite existing risks such as curve steepening and potential Fed rate cuts, most risks are considered manageable.
Corporate Cryptocurrency Strategies
Many public companies are increasingly incorporating cryptocurrency into their financial strategies. Data from Galaxy Digital shows that 228 companies collectively hold 820,000 BTC. About 20 of these companies use a leveraged finance model similar to that developed by MicroStrategy. However, David Duong warns that such use of cryptocurrency may pose 'systemic risks', as companies may be forced to sell their assets during market stress.
Economic and Regulatory Changes in the US
Concerns over a technical recession in the US have eased following adverse external economic conditions. The Atlanta Fed’s GDPNow forecast is pegged at 3.8% as of June 5, indicating stronger growth. In 2025, significant regulatory changes in cryptocurrency are expected, including bipartisan support for stablecoin legislation and market structuring initiatives.
Coinbase's optimistic projections for the cryptocurrency market are underpinned by both favorable economic changes and active regulatory developments in the US, which may create a solid foundation for further growth.
