Coinbase "October liquidations formed the bottom… cycle not over"

The US cryptocurrency exchange Coinbase said Bitcoin (BTC) and other major cryptocurrencies' upward cycle has not ended.

On the 9th, industry sources reported that Coinbase Institutional said in a recent report, "The cryptocurrency market found a short-term bottom after last month's large-scale liquidations," and "the market appears to have undergone a rebalancing rather than a collapse." Coinbase Institutional is Coinbase's institutional-only solutions firm.

Coinbase said last month's liquidations laid the groundwork for the next upward phase. Coinbase Institutional said, "Last month's selling restored leverage to structurally healthy levels," and "excessive leverage has been cleared out, fundamentals remain strong, and institutional investors are quietly re-entering the market," it analyzed.

Coinbase emphasized that the upward cycle has not ended. Coinbase Institutional said, "Last month's selling was more likely a necessary 'reset' rather than the end of the cycle," and "macroeconomic risks remain, but structural demand is strengthening." It added, "Institutional investors, who were largely spared from the leverage crash, are likely to lead the next upswing," and predicted, "(cryptocurrencies) are more likely to show a gradual upward trend in the coming months rather than sharp rallies toward new highs."