Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
In the second quarter, the cryptocurrency market transitioned into a neutral phase: a clear trend is absent, and economic and political factors are significantly influencing market dynamics, according to analysts from the cryptocurrency exchange Coinbase.
According to their findings, one of the primary drivers remains the events in the Middle East and fluctuations in oil prices. Against this backdrop, Bitcoin is increasingly correlating with the stock market, particularly with the S&P 500 index, while its connection with gold remains weak. Capital has largely shifted into stablecoins, indicating a strategy of waiting among investors rather than capitulation.
Coinbase also noted that major players view the current situation as a late stage of the bear cycle. They stated that Bitcoin remains undervalued, and its market dominance is likely to persist at current levels.
Related Posts
On-chain data indicates a gradual “cleansing” of the market. Short-term speculative activity is declining, while long-term holders continue to accumulate significant amounts of cryptocurrencies — a typical behavior for the phase of market bottom formation.
Analysts specifically highlighted the dynamics of Ethereum, which, in their assessment, has passed through a capitulation phase following a sell-off and is beginning to transition towards recovery. There is an observed growth in the segments of stablecoins and tokenized real-world assets (RWA), with capital concentrating in the main network.
Coinbase added that the future dynamics of the cryptocurrency market will depend on external factors. Among the key triggers, analysts identified the potential de-escalation of the conflict between Iran and the USA, a decrease in oil prices and inflation, or conversely, an escalation of tensions, rising energy costs, and recession risks.
Previously, analysts from the on-chain platform CryptoQuant reported that conditions characteristic of the “final stage of capitulation” have formed in the cryptocurrency market.
