Market Outlook and Investor Sentiment
Coinbase Institutional's November report indicates that October's market liquidations could signal a medium- to long-term rebound, with cautious optimism predicted for the fourth quarter.
Investors focus on EVM chains and ETH, while macroeconomic risks and liquidity gaps challenge market recovery amid potential upward trends.
Medium-Term Market Rebound with Selective Investments
Coinbase Institutional published a monthly outlook report on November 9th, highlighting October's market disruptions as a potential bottoming phase. According to the report, although the crypto market was engulfed in panic, liquidations indicate a ripe environment for medium- to long-term recovery. While leverage levels displayed improvement, liquidity gaps remain, presenting challenges ahead.
Current circumstances imply that a slow rise is more likely in the medium term, rather than a rapid surge to past record highs. The outlook further identifies a strategic rotation of capital into EVM chains, RWAs, and yield protocols, signifying a selective reinvestment strategy by investors rather than withdrawal from the market.
"Liquidity conditions, policy progress and expanding on-chain usage — led by stablecoins and maturing ETF plumbing — remain supportive into year-end, with bitcoin best placed to lead if those supports hold." — Coinbase Institutional Research Team
Bitcoin and Ethereum Positioned for Leading Recovery
In previous cycles, Bitcoin and Ethereum led rebound efforts following market volatility resets in 2022 and 2023, often being the early beneficiaries as confidence returned.
Bitcoin (BTC) is currently priced at $101,859.67, with a market cap of $2.03 trillion and a 24-hour trading volume of $48.24 billion. Bitcoin's dominance is at 59.21%. Its price has displayed a downtrend over the past three months, declining by over 16.33%. Current circulating supply stands at 19,946,346 BTC out of a maximum supply of 21 million coins.
Insights from the Coincu research team suggest an ongoing regulatory evolution with advancements in exchange-traded funds (ETFs) and enhanced stablecoin frameworks. Progress in Layer 2 solutions boosts Ethereum's growth prospects, as shown in the ongoing development of scalable, cost-effective solutions on the ETH network.