🌎 Coinbase Research: Macro Factors to Dominate Crypto Market

Analysts at Coinbase Research predict that macro pressures will dominate the crypto market in the upcoming weeks, citing the absence of specific catalysts.

The crypto market is currently highly concentrated on macroeconomic events, according to a recent report from Coinbase Research. The report indicates that the market’s reliance on broader economic factors has intensified, with no immediate catalysts in sight to reverse this trend.

In an Aug. 9 research report, Coinbase’s analysts linked the Bank of Japan’s recent rate hike to the reversal of yen carry trades, which impacted global markets. Additionally, escalating tensions in the Middle East have made many investors uneasy about geopolitics, particularly concerns surrounding oil supply.

Crypto Remains Dependent on Macro Factors

In addition to macro pressures, the report notes that the crypto market was further destabilized by a substantial liquidation event on Aug. 4, in which over $1 billion in perpetual contracts were wiped out within 24 hours. This was the largest such event since March.

While this mass liquidation may have led to cleaner market positioning, liquidity remains constrained. Analysts observed that leverage in on-chain spot markets, measured by stablecoin borrow amounts, has been significantly reduced. Given the absence of idiosyncratic catalysts for crypto in the next few weeks, macro dominance could continue, according to analysts at Coinbase Research.

Looking ahead, Coinbase maintains a defensive approach for Q3, expecting that macroeconomic factors will continue to drive crypto price movements. Upcoming U.S. inflation data is likely to impact market sentiment.

However, not all analysts share this perspective. Grayscale Research, for example, recently suggested that if the U.S. economy achieves a soft landing and avoids a recession, token valuations could recover. Bitcoin might even revisit its all-time high later this year.