Coinbase keeps neutral 3Q crypto outlook, says BTC may be entering accumulation

Coinbase Institutional and Glassnode released a joint report that maintained a neutral outlook for the cryptocurrency market in the third quarter of this year. The report said the crypto market capitalization excluding stablecoins fell about 12% in the second quarter, while stablecoin supply reached a record high. It added that on-chain data suggests Bitcoin may be shifting from a correction phase into an accumulation phase. Signs of that transition include compressed valuations, active supply nearing multiyear lows, and the share of supply in profit falling below its historical lower bound. The report cautioned, however, that the macro liquidity backdrop remains tight. Under Kevin Warsh, the U.S. Federal Reserve has maintained a hawkish stance, while geopolitical risks, selling pressure from companies holding cryptocurrencies, and net outflows from spot BTC and ETH ETFs in the first half, with the pace of outflows now slowing, are also weighing on the market. Overall caution is warranted, according to the report.