Coinbase analysts David Duong and David Han suggest that a major crypto rally is unlikely in Q3 2024, anticipating unstable market conditions for the quarter.
They attribute this to the lack of strong positive trends supporting the market.
There is considerable uncertainty regarding the upcoming launch of several spot Ethereum ETFs. If these ETFs attract lower-than-expected investments, it could negatively impact the market.
These Ethereum ETFs are set to launch in July, and after a turbulent couple of months, the analysts predict the market may stabilize in the fall.
Duong and Han also express concerns about a potential recession in the U.S., with recent economic data indicating a slowdown. This economic uncertainty may deter retail investors from buying altcoins.
However, the analysts note that potential interest rate cuts by the U.S. Federal Reserve could positively impact the market. Lower-than-expected inflation in June might lead the Fed to reduce rates to avoid a severe economic downturn.
Some experts, like Tom Lee from Fundstrat, predict that Bitcoin could see a significant rally in the latter half of the year due to falling inflation.
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