Coinbase report: Double interest rate cuts in China and the United States are bullish for the crypto market! Bitcoin will have strong performance in Q4

The US-listed cryptocurrency exchange Coinbase released a "Token2049 Conference Highlights" report on the 27th, summarizing the key insights from the Token2049 and Solana Breakpoint conferences held in Singapore. The report suggests that crypto investors' sentiment appears quite optimistic, perhaps influenced by the Federal Reserve's 18th decision to cut rates by 2 notches. The report forecasts that due to the US rate cut and China's recent major fiscal and monetary stimulus measures, the crypto market will see constructive progress in Q4 2024, which will enhance market liquidity and support Bitcoin's performance. The report focuses on Bitcoin and high-volatility cryptocurrencies, and is optimistic about the overall market outlook for the coming months: "China has announced a massive dual fiscal and monetary stimulus plan, including record-breaking rate cuts, liquidity support for stocks, and a reduction in bank reserve requirement ratios - all aimed at 'promoting lending and reducing existing loan burdens'." "The reduction in bank reserve requirement ratios should be particularly beneficial for market liquidity, which we have previously found to be positively correlated with Bitcoin performance. That said, we expect the positive impact of these measures on cryptocurrency performance to be somewhat delayed." The US and China's monetary policies have seen major changes this month, injecting ample liquidity into the market. The US has initiated its first rate cut since 2020, cutting 2 notches at once, while China has cut reserve requirements by 2 notches and injected around 1 trillion RMB into the financial market, while also lowering the 7-day reverse repo rate that serves as the main policy rate by 0.2%, and reducing mortgage interest rates. Regarding Ethereum, Coinbase notes that on-chain activity is growing, with DEX trading volumes rising and Ethereum gas fees also increasing. However, the launch of an Ethereum spot ETF in the US has not had the same impact as the Bitcoin ETF: "While many market participants are bullish on Bitcoin, we have encountered some skepticism around Ethereum, as Ethereum does not appear to have benefited from the launch of the Ethereum spot ETF in the US a couple of months ago." This contrasts with the hype around Bitcoin, Solana, and other emerging L1 networks, as Solana is rapidly expanding its ecosystem through new products and partnerships. Despite some market concerns about Ethereum's performance, the overall outlook for the cryptocurrency market remains quite positive. Solana and other emerging L1 networks are increasingly challenging Ethereum's dominance, as people are becoming more focused on scalability and transaction efficiency. The rise of decentralized exchanges (DEXs) and improvements in blockchain infrastructure suggest that the overall cryptocurrency space is poised for positive progress in the future.