Coinbase: Bitcoin Will See a Bull Market in Q4 of This Year

"US Fed 'Big Cut' and China's Economic Stimulus, Triggers Upward Trend in the Second Half" ETH Surrounded by Pessimism... "ETF Effect, Below Expectations" Coinbase claimed that Bitcoin (BTC) will face a bullish trend in the 4th quarter of this year, citing the US interest rate cut and China's economic stimulus. Coinbase Institutional, Coinbase's institutional investment platform, explained in the report 'Takeaways from Token 2049' released on the 28th that the decisions of the US and China will inject liquidity into the cryptocurrency market. Takeaways from Token 2049 is a report that contains insights from the world's largest blockchain event 'Singapore Token 2049' held in the third week of September in Singapore. The US Federal Reserve (Fed) announced a 'big cut' of a 50bp rate hike at the Federal Open Market Committee (FOMC) meeting on the 18th (local time). The Fed also announced that it will lower interest rates by about 100bp this year. A week after the Fed's announcement, on the 24th, the Chinese government announced a 0.5 percentage point cut in the reserve requirement ratio (RRR) as a measure to achieve an economic growth rate of 5%. The People's Bank of China, China's central bank, has lowered the RRR four times since 2022, and also lowered it by 0.5 percentage points in February this year, lowering the average RRR to around 6.9% currently. The report explained that "the Fed's announcement of a 50bp rate cut has created an environment where other monetary authorities can be more aggressive in stimulating the economy," and "the policy changes of the Chinese government are one of the results." It emphasized, "The effects of the Fed's choice appear to be able to inject liquidity into the market, and I share a very optimistic outlook for the 4th quarter of 2024 as a result." On the other hand, the report pointed out that Ethereum (ETH) has not enjoyed as much price increase as Bitcoin despite the launch of physical exchange-traded funds (ETFs) in the US. The report stated that "many participants in the event expressed skepticism about the future outlook of Ethereum, given the poor performance of Ethereum despite the launch of physical Ethereum ETFs," and "Ethereum is being challenged by other Layer 1 networks led by Solana."