Leading U.S. cryptocurrency exchange Coinbase announced the date of publication of financial results for the third quarter of 2022. According to the news, the exchange will release a letter to shareholders, including the required figures, on Nov. 3 after the close of trading on the stock market. Among other things, Coinbase will hold a Q&A session and discussion of the released financials at 2:30 p.m. the same day.
Coinbase's quarterly financial reports have long been an indicator for the cryptocurrency market. Depending on the results and the structure of these reports, one can not only understand but also predict possible future developments.
What to expect and where to watch?
The exchange's two previous reports were extremely negative, with revenue, trading volume and assets on Coinbase, as well as the number of users making transactions, declining catastrophically. Nevertheless, these results did not seem surprising, as their nature only confirmed the declining settings of the crypto market.
What, on the other hand, has attracted considerable interest is the allocation of trading volume between retail and institutional investors. According to recent data, institutional investors account for 78.8% of trading turnover, and this number is growing steadily. That is, the value of Bitcoin is increasingly determined not by crowd sentiment and the level of adaptation of crypto, but by the U.S. dollar money supply and U.S. Federal Reserve interest rates.
Given the Fed's monetary policy, the continued increase in the institutional share of trading volumes could further signal that the crypto market is following the U.S. stock market. The latter, in turn, appears to be heading "south."
Alex Dovbnya
Dan Burgin
Vladislav Sopov