Coinbase: Bitcoin is Presenting a Positive Outlook Towards the End of the Year

Coinbase Institutional has announced in its report published for the last quarter of 2025 that despite the fluctuations in the cryptocurrency market, it is showing a positive outlook as the year comes to an end. According to the report titled "Charting Crypto: Navigating Uncertainty," prepared in collaboration with Glassnode, the company has begun to take a "cautious yet upward" stance following the sharp decline on October 10.

The company attributed the price drop during that period to excessive leverage and weak order books. It was also noted that automatic liquidations on some exchanges negatively impacted liquidity. Coinbase emphasized that prices stabilized as the weekend approached, but investors continued to adopt a cautious approach due to increasing macroeconomic concerns. The report indicated that the global M2 money supply index has historically shown a strong correlation with Bitcoin prices and has shown a supportive trend during this quarter.

However, warnings were also issued that financial conditions could tighten again in the last period of the year. Coinbase expects the Federal Reserve to cut interest rates two more times before the end of the year. It was expressed that this situation may encourage a shift from money market funds to riskier assets.

The report also noted that the supply and transaction volumes of stablecoins are approaching record levels, showing that this is accelerating on-chain payments. Coinbase announced that the Bitcoin and Ethereum spot ETF infrastructure in the U.S. is deepening, allowing traditional investors to access the market more easily and increasing market liquidity.

Coinbase stated that Bitcoin is one of the most optimistic assets for institutional investors over the next 3-6 months, referring to Bitcoin as "digital gold," and highlighting its prominence in an environment of distrust regarding current fiscal and monetary policies. On the Ethereum side, it was noted that developments in layer-2 networks and decreasing transaction fees are strengthening the ecosystem.

It was mentioned that companies accumulating Bitcoin and Ethereum now make up a significant portion of the circulation supply in the market, providing a stable buyer base for this group. However, it was emphasized that uncertainties in the long-term strategies of these companies persist following weakness in the equity markets. Coinbase expressed that despite elements such as data gaps in the U.S. and the risk of decreased liquidity in November, the overall outlook for the end of the year remains positive. Liquidity conditions, policy support, and increasing on-chain usage are creating a positive environment for the cryptocurrency market, led by Bitcoin.