While the cryptocurrency market started April with declines, Coinbase believes that many factors suppressing prices are behind.

In the report prepared by Coinbase Institutional research analysts, “Many of the negative situations we identified in early March are now behind us, and looking ahead, the picture for the second quarter of 2024 is more positive for cryptocurrencies in our opinion.”

In the report, it was noted that positive factors that will positively affect the course of prices may emerge from the second half of April. Analysts predict that another important development may occur while drawing attention to the upcoming block reward halving. That is, many brokerage houses and banks’ 90-day review processes for spot Bitcoin ETFs expire on 10 April. According to analysts, this could pave the way for a large capital flow for spot Bitcoin ETFs in the medium term.

Coinbase analysts also stated that the cryptocurrency market is in good shape despite the liquidity problem caused by US holidays and month-end changes in institutional portfolios. In the report, the declines seen in the short term are explained by two factors. The first of these is profit-taking due to the tax period, and the other is the transactions of speculators who sell MicroStrategy shares short, but take a long position in Bitcoin.