Bitcoin (BTC) and altcoins experienced a major crash yesterday. While this crash has left investors uneasy, Coinbase Institutional Head of Global Investment Research (CFA) David Duong said that a parabolic move could soon be on the horizon for the cryptocurrency market.
Speaking to Milk Road, David Duong highlighted two catalysts that could trigger this parabolic move.
According to Duong, macroeconomic factors and increasing institutional participation could lead to a major move in the cryptocurrency market.
Duong said that macro factors such as possible Fed rate cuts and stable monetary policy for the rest of the year could create a supportive environment for the rise of risky assets like Bitcoin and Ethereum (ETH).
The famous name stated that the FED’s 25 basis point interest rate cut, as well as guidance towards further easing in current market conditions, supports a risk-focused approach.
Coinbase CFA stated that aside from FED interest rate cuts, increased institutional buying could also increase prices.
Duong said he believes that growing interest among institutions could also increase the purchasing power and stability of the cryptocurrency market.
At this point, Duong said that digital asset treasuries (DAT) could push up the prices of cryptocurrencies.
“I think institutions will definitely play a big role here… I believe institutions will really drive this cycle.”
*This is not investment advice.