Market Enters Base-Building Phase
Coinbase Institutional’s latest monthly outlook suggests that the crypto market has likely entered a base-building phase. The report indicates that after the liquidation event on October 10, which cleared significant leverage from the market, a short-term price bottom may have formed.
The outlook also presents a bullish tilt in Bitcoin (BTC) price expectations for the next three to six months, with potential price targets ranging from $90,000 to $160,000.
The report highlights a key factor in the market’s recovery: the cleaning up of leverage. Excessive borrowing had created imbalances, but as leverage is reduced, market conditions become more favorable for future growth.
The outlook also mentions potential tailwinds in the form of easing liquidity, Federal Reserve rate cuts, and new regulations that could support continued market expansion well into 2026.
Institutional Investors Rotate Back Into Crypto
Coinbase Institutional’s report emphasizes the role of institutional investors in the current market shift. Despite the October sell-off, it indicates that these investors are rotating back into crypto rather than withdrawing capital.
The focus is on high-value sectors such as Ethereum Virtual Machine (EVM) chains, Real-World Assets (RWAs), and yield protocols. These areas are attracting “smart money,” signaling a strategic re-risking as institutional players continue to invest selectively.
While liquidity gaps remain, institutional players are carefully choosing their exposure to avoid unnecessary risk. The report warns that selectivity remains crucial at this stage of market recovery, but overall the sentiment is positive with a focus on structural demand rather than short-term speculative moves.
Macro Factors May Extend Crypto Bull Cycle to 2026
The Coinbase Institutional report also notes the impact of broader macroeconomic factors on the crypto market. Easing liquidity and expected Federal Reserve rate cuts are identified as key drivers that could fuel market growth. These developments, alongside the structural demand for digital assets, may extend the current market cycle well into 2026.
Although macroeconomic risks persist, the ongoing shift in market sentiment suggests that the broader crypto landscape is positioning itself for long-term expansion. The reduction in leverage and the rising institutional interest indicate that the market may be entering a more sustainable growth phase.