Crypto Market Could Face Some Short-Term Headwinds, Coinbase Says

Crypto markets are facing short-term headwinds, according to a report from Coinbase. The report highlights that liquidity could be impacted by quarter-end rebalancing and that negative technical factors may limit further gains. Despite bitcoin hitting a new all-time high, the report suggests that these macro and technical factors could prevent significant upward movement in the near term. The expiration of the Bank Term Funding Program and a drop in fund managers’ cash reserves are cited as potential factors impacting liquidity. Coinbase predicts that bitcoin will trade within a narrow range until the upcoming halving event in mid-April. The report also notes that the influence of exchange-traded funds has changed bitcoin’s market dynamics.