- Coinbase issued a warning for investors to not fall into the bear trap.
- Analyst David Duong believes that the market will remain bullish in the long term.
- The sluggish period will last through “the Fed decision in mid-September.”
Coinbase, the largest cryptocurrency exchange in the U.S., has issued a stark warning to crypto investors following the recent market turmoil that saw Bitcoin (BTC) plunge below $50,000. In a blog post, Coinbase analyst David Duong cautioned against being “fooled” by the current rebound and emphasized that the market will likely remain volatile in the short term.
Duong stated, “We believe these market jitters will persist in the short-term, but it’s possible that shorts could get squeezed here, which could lead to a market rebound in the next few days.” The analyst cited recession fears and the upcoming Federal Reserve decision in mid-September as potential headwinds for the crypto market in Q3.
The recent crypto market crash, triggered by the Bank of Japan’s (BOJ) interest rate hike and subsequent reversal, wiped out millions in value from the space. Bitcoin and Ethereum (ETH) experienced significant declines, falling to $50,000 and $2,000, respectively.
As per CoinMarketCap data, the market has rallied massively from the weekend crash, with Bitcoin trading at $57,267 and ETH trading at $2,418. Altcoins like XRP and SOL have printed significant gains in the past two days while meme coins have also rallied.
Notably, as per Duong, “recession fears could yet intensify” in the short term and hinder the growth of the digital asset space. The analyst believes that the phase will last “through the Fed decision in mid-September,” adding that the crypto market will remain “choppy” in the third quarter.
Coinbase’s warning underscores the ongoing volatility continuing to define the crypto market space. While the recent rebound offers hope, Coinbase’s insights act as a reminder for investors to stay vigilant and to reconsider methods to mitigate risk during the current market turbulence.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
