Report: The dependence of the cryptocurrency market on broader economic events is increasing

A new report from Coinbase Research states that macroeconomic pressures have had a significant impact on the cryptocurrency market. Analysts predict that the market will continue to be weak in the coming weeks, as there are too few catalysts to drive price increases. The changing global situation is causing many investors to feel anxious. The Coinbase report emphasizes that the cryptocurrency market's dependence on broader economic events is increasing. In this regard, last week's interest rate hike decision by the Bank of Japan was related to yen carry trade liquidation, which stirred ripples in global markets. Additionally, renewed tensions in Middle Eastern geopolitics seem to have sparked concerns about oil supply, further disrupting the market. These are not theoretical macro pressures; they are indeed important for investor sentiment and market stability.

According to analysts at Coinbase, leverage rates in spot markets on-chain have dropped sharply, which could also mean recent steep declines have made investors quite cautious. They believe that without direct catalysts, recent price trends of cryptocurrencies will continue being dominated by macroeconomic factors. Coinbase plans to enter Q3 2024 with caution based on their outlook derived from upcoming U.S inflation data which may affect market sentiment.