Has Bitcoin Hit the Bottom? Are We at the Last Stop Before the Rise? A Striking Report from Coinbase!
After falling below $58,000 in June, Bitcoin has been trading sideways between $62,000 and $64,000 for some time.
While this has fueled predictions that Bitcoin has hit bottom, some analysts still believe further declines are possible.
However, Coinbase argues that the declines in Bitcoin due to adverse events have been limited and that the market may have entered a bottoming phase.
Coinbase, the largest cryptocurrency exchange in the US, noted Bitcoin’s resilient performance despite recent macroeconomic and geopolitical developments, suggesting that $BTC may have entered a bottoming phase.
In their weekly market review, Coinbase Institutional analysts assessed recent developments. They noted that the decline in US non-farm payroll data indicated a weakening labor market, and that rising tensions in the Middle East were increasing inflation concerns via oil prices.
According to the analysis, these developments have strengthened expectations in the markets that interest rates may remain high for a longer period, while at the same time increasing uncertainties regarding the Fed’s interest rate policy.
At this point, Coinbase noted that despite the negative outlook full of uncertainties, Bitcoin experienced a limited pullback, which is a significant indicator of strength.
“…Despite these negative factors, $BTC only fell by approximately 2%.”
Analysts also added that Bitcoin has outperformed stocks on a risk-adjusted basis.
Coinbase analysts ultimately interpret Bitcoin’s recent strong performance as a sign of a possible bottoming out process.
Conversely, they state that a sustained upward trend in $BTC requires stronger liquidity inflows into the market and increased participation from leveraged investors.
*This is not investment advice.
