Coinbase head of research: second-quarter environment more favorable for cryptocurrency performance

PANews reported on April 1 that Coinbase head of research David Duong said in a recent article: “The cryptocurrency market has remained robust in the face of liquidity disruptions caused by U.S. holidays and month-end (and quarter-end) rebalancing. Tax season is also approaching and could serve as a potential catalyst for profitability in the near term. However, many of the headwinds we identified earlier this month are now in the past, and going forward, we believe the environment in Q2 2024 will be favorable for cryptocurrencies. performance was more favorable. However, we believe these positive factors may not start to emerge more clearly until late April."

Duong also analyzed: “From a demand side perspective, the 90-day review period used by many financial companies when conducting due diligence on new financial products (such as spot Bitcoin ETFs) may end as early as April 10. Although three months is the usual (and stated) watch period for money managers like LPL Financial, but there are some companies with shorter or longer watch periods. We think this could unlock a lot of money for U.S. Spot Bitcoin ETFs over the coming period. funds."

Duong also said that institutional interest in this space appears to remain high based on the level of leveraged short positions in CME Bitcoin futures, according to CFTC data.