TechFlow news — Coinbase released its "Weekly: Constructive Outlook" report on Friday, forecasting that macroeconomic factors will become increasingly relevant to the digital asset class in the coming weeks, potentially providing support for performance. The report also addressed the U.S. economic outlook.
It explained that the probability of a soft landing now appears higher than it did several months ago, as the U.S. economy seems to be achieving minimal trade-offs between economic activity and inflation.
Coinbase analysts believe the disinflation trend will continue and expect the Federal Reserve to cut interest rates by 100 basis points this year. This forecast contrasts with the 75 basis points suggested in the Fed's dot plot and the nearly 150 basis points priced into federal funds futures.
The analysts concluded that rate cuts in the U.S. are likely to begin in May, followed shortly by a slowdown in quantitative tightening, coinciding with specific events such as the Bitcoin halving, thus creating a positive environment for broader asset classes.
