In a recent report from Coinbase Research, macroeconomic pressures have been identified as having a significant impact on the cryptocurrency market. Analysts predict that the market is likely to remain subdued in the coming weeks, citing a lack of catalysts to drive prices higher. This environment of uncertainty has led to increased nervousness among investors.
The report underscores the growing dependence of the cryptocurrency market on broader economic events. One notable example highlighted is the Bank of Japan’s decision to raise interest rates last week, which contributed to the unwinding of the yen carry trade and sent ripples through global markets. Additionally, renewed geopolitical tensions in the Middle East have raised concerns about oil supply, further unsettling the market. These are not merely theoretical pressures; they play a crucial role in shaping investor sentiment and market stability.
Coinbase analysts point to a significant decline in leverage in the on-chain spot market, suggesting that the recent sharp drop in prices has made investors more cautious. Without direct catalysts, they believe that near-term price movements in the cryptocurrency market will continue to be influenced by macroeconomic factors. As Coinbase enters the third quarter of 2024, the company adopts a cautious outlook, focusing on the upcoming U.S. inflation data, which could significantly affect market sentiment.
