Coinbase analysts remain optimistic for the fourth quarter, arguing that a mix of resilient liquidity, a favorable macro backdrop and supportive regulatory signals could keep the crypto market rally alive.

Bitcoin (BTC), they argue, continues to benefit from macro tailwinds and could outperform market expectations, analysts David Duong and Colin Basco said in a Wednesday report.

“Barring a shock to energy prices we think the immediate risk to disrupting the current U.S. monetary policy path is actually quite low,” the analysts wrote. On-chain demand from digital asset treasuries (DATs) is also expected to provide a floor for prices.

One lingering concern for investors is seasonality, the report said, noting six straight September declines for BTC against the dollar between 2017 and 2022

See Full Page