Neutral Outlook: Q3 Crypto Market Faces Valuation Compression

Coinbase Institutional and Glassnode's joint report has offered a neutral outlook for the Q3 crypto market.

The report, part of their Charting Crypto series, combines institutional research and on-chain data to assess current trends.

Despite the Federal Reserve's hawkish stance and net outflows from ETFs, the authors argue that valuation compression and low active supply often correspond to accumulation zones.

This phenomenon is characterized by resources shifting from trading capital to long-term allocation, driven by investors seeking to increase positions after macro and regulatory catalysts.