Coinbase Report: The Trends of the Cryptocurrency Market After Bitcoin Halving Will Be More Dominated by Macroeconomic Factors

ChainCatcher news, cryptocurrency exchange Coinbase pointed out in a research report that after the upcoming Bitcoin halving, the trends in the crypto market are more likely to be driven by macroeconomic factors, although the fundamentals of cryptocurrencies remain strong.

Coinbase analyst David Han stated that these macro factors are mostly unrelated to cryptocurrencies, including escalating geopolitical tensions, long-term high interest rates, inflation rebounds, and rising national debt. The recent increase in the correlation between altcoins and Bitcoin highlights this point, indicating that even as Bitcoin's status as a macro asset becomes increasingly solidified, it still plays the role of a "stabilizing force" in the cryptocurrency space.

Unlike previous halving cycles that were accompanied by other ecosystem catalysts driving the bull market, Coinbase believes that the growing investor base for Bitcoin as a macro hedge partially explains the reduced magnitude of this market correction. Nevertheless, considering the current macro environment, Wall Street giants like Goldman Sachs have recently cautioned against simply extrapolating the price impacts from past halving cycles.