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Bitcoin set for strong Q4 amid US rate cuts and China stimulus

Bitcoin set for strong Q4 amid US rate cuts and China stimulus

GrafaGrafa2024/09/30 04:30
By:Mahathir Bayena

Coinbase Institutional’s latest report predicts a constructive Q4 2024 for Bitcoin (CRYPTO:BTC), driven by expectations of U.S. rate cuts and China’s fiscal stimulus, which could boost liquidity and market performance.

The report, co-authored by David Duong and David Han, summarises key takeaways from the Token2049 and Solana Breakpoint conferences held in Singapore.

According to Coinbase, Bitcoin is well-positioned for growth in the coming months, with strong market optimism fueled by favorable macroeconomic conditions.

The combination of U.S. monetary policy shifts and China’s economic measures is expected to provide a more liquid environment for the cryptocurrency market, supporting Bitcoin's performance.

However, the report also highlights challenges facing Ethereum (CRYPTO:ETH), particularly with rising transaction fees and limited gains from the launch of U.S. spot Ethereum ETFs.

“Despite the recent spot ETH ETFs launch, Ethereum has not experienced the same benefits as Bitcoin,” the report notes.

On-chain activity has increased, driving up gas prices, but Ethereum's performance has not matched Bitcoin's recent strength.

In contrast, alternative networks like Solana (CRYPTO:SOL) are gaining traction, with new products and partnerships expanding their ecosystem.

Solana is seen as a strong contender in the layer-1 space, focusing on scalability and transaction efficiency.

Despite Ethereum’s challenges, the overall outlook for the crypto market remains positive.

The rise of decentralised exchanges (DEXs) and advancements in blockchain infrastructure suggest continued growth in the sector.

With favorable global economic conditions, the market is poised for further development, and Coinbase anticipates strong performance across various crypto assets as Q4 unfolds.

At the time of writing, the Bitcoin price was $64,419.42.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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