The cryptocurrency market has witnessed sharp declines over the past two weeks, with Bitcoin (BTC) and altcoins experiencing significant declines due to US President Donald Trump’s renewed Chinese tariffs.
However, despite these declines, the expectation of a rise in the market continues.
At this point, Coinbase, the largest cryptocurrency exchange in the United States, stated in its latest survey that 67% of institutional investors expect an increase in BTC over the next 6 months.
The Coinbase report also revealed a divergence of opinion on where we are in the market cycle, with 45% of institutional participants stating they believe the market is in a late-stage bull run, while only 27% of non-institutional investors agreed with this view.
David Duong, head of research at Coinbase Institutional, said the crypto bull market has plenty of room to rise, but investors are becoming more cautious after the massive crash on October 10.
“There is still room for upside in the Bitcoin and cryptocurrency markets. We still see resilient liquidity conditions, strong macroeconomic backdrop, and supportive regulatory dynamics.”
The Coinbase survey report also listed the key factors that could drive the crypto market in the fourth quarter of 2025. At this point, Coinbase stated that liquidity, policy progress, stablecoins, and ETF infrastructure expansion will determine whether the market will continue to rise.
At this point, Duong emphasized that macro and liquidity supports, such as the Fed’s two expected interest rate cuts and the waiting of large money market funds to buy, could also guide the markets in the fourth quarter.
“Further rate cuts by the Fed and further fiscal and monetary stimulus in China could discourage more investors from investing.”
The report also highlighted excessive leverage and poor liquidity as the main reasons for the recent correction, especially in Bitcoin.
Automatic liquidations on some exchanges further tightened liquidity by restricting market makers’ short positions, but prices have since stabilized and the market has entered a gradual recovery phase, it said.
*This is not investment advice.