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Coinbase researchers David Duong and David Han have predicted that a major cryptocurrency rally is unlikely to occur in the third quarter of 2024.
The analysts believe that the price action will be "choppy" during the current quarter.
This prediction is based on the fact that there are no convincing bullish narratives that could prop up the market.
Alex DovbnyaThere is a lot of uncertainty surrounding the hotly-anticipated launch of multiple spot Ethereum exchange-traded funds (ETFs). If these products recorded underwhelming inflows, their underperformance could emerge as another bearish catalyst for the market. As reported by U.Today, Ethereum ETFs are expected to be recorded this July.
After a period of volatility over the next two months, Coinbase researchers expect the market to improve in the fall.
Duong and Han have also pointed to recent reports about the U.S. economy potentially falling into a recession. These concerns are not groundless given that recent macro data has clearly shown that the U.S. economy is cooling off. Due to fears of economic problems, retail investors are unlikely to purchase altcoins, according to Coinbase.
On a positive note, the researchers believe that the U.S. Federal Reserve cutting rates this year could bode well for the market.
As reported by U.Today, US inflation turned out to be lower than expected in June. Now, the Fed might end up cutting rates multiple times this year in order to prevent a dramatic slowdown in economic activity.
Some analysts of the likes of Fundstrat's Tom Lee expect Bitcoin to experience a strong rally in the second half of the year due to declining inflation.
Denys Serhiichuk