Coinbase Inst. warns of potential Bitcoin drop.

Jafar224

The research division of Coinbase, a leading cryptocurrency exchange platform in the United States, suggests that investors may actively buy Bitcoin during a downturn. Coinbase Institutional stated in a recent blog post that due to intensified economic and geopolitical concerns, gold is emerging as the winner of this cycle. Coinbase attributes gold's success to both the threat of inflation and expectations of the Federal Reserve beginning a rate-cutting cycle.

"In this environment, gold has consistently been the biggest winner, hitting new highs amid increased central bank purchases, escalating geopolitical risks, and concerns over re-inflation," Coinbase noted. The notable performance of gold typically correlates with Fed rate cuts and rising inflation. Considering the recent hawkish views on rate cuts in the market, Coinbase believes gold's performance indicates excessive inflationary pressures, with some inflation fluctuations potentially being more problematic than expected.

Regarding Bitcoin, Coinbase Institutional suggests that as the highest valued cryptocurrency asset, often considered "digital gold" by market capitalization, Bitcoin may be anticipated to accumulate more actively during adjustment periods.

"In our view, the increasing acceptance of Bitcoin as a form of 'digital gold' may generate demand from a new cohort of investors within this market ecosystem. Therefore, we believe that, compared to previous cycles, investors who are buying the dip may be more aggressive, even as volatility persists in the price discovery process," Coinbase stated.

Coinbase also expressed continued optimism towards the leading cryptocurrency, as it benefits from the demand for Bitcoin exchange-traded funds (ETFs) in the spot market, while the network prepares to reduce new BTC supply through halving.

In our view, the capital unlocked by ETFs represents the most fundamental shift in market structure from the previous 2020-21 cycle to today. This capital unlocking, coupled with the impending Bitcoin halving and other positive catalysts, leaves us constructive throughout the entire second quarter, Coinbase added.

Isha000

Encountering a decline is unavoidable.

Yamini003

The decline is quite inevitable, to be honest.

Ritu13

As long as it seems as stable as gold, it's bound to experience a significant drop.