Coinbase: market shakeout or restart? The crypto boom is returning!

Coinbase: market shakeout or restart? The crypto boom is returning!

On November 7, 2025, amid a challenging crypto market environment, leading US cryptocurrency exchange Coinbase expressed optimism about the current market situation. Despite the selling pressure in October that unsettled many investors, Coinbase believes that this phase does not represent the end of a market cycle, but rather could be a necessary market shakeout. According to the analysis of the exchange's research department, excessive leverage has been eliminated and the fundamentals of the crypto markets remain intact.

Coinbase notes that institutional investors are slowly but surely returning to the game. These “smart money” investors are increasingly focused on Ethereum Virtual Machine (EVM) chains as well as real-world assets (RWAs) and yield protocols. This leads to selective risk management aimed at realizing potential benefits in a complex economic environment.

Market analysis and forecasts

Analysts at Coinbase expect that crypto markets have likely found a bottom as leverage is now healthier. A slow rise is predicted in the coming months, rather than an abrupt, parabolic rise. What's particularly striking is that institutional investors remain largely isolated and could lead a potential next move higher.

Retail-heavy altcoins have suffered the most during this turbulent period. In contrast, Bitcoin is expected to play a central role in the short-term recovery, while Ethereum could also gain traction. Coinbase predicts that Bitcoin dominance will increase over the next two to three months before a rotation towards altcoins occurs.

Liquidity and macroeconomic challenges

Another notable detail is that the supply of stablecoins has not expanded significantly, indicating that capital is rotating within the market rather than allowing new money to flow. Market recoveries also depend on tactical incentives and narratives until broader liquidity is in place. The overall macroeconomic environment remains both complex and manageable, with Federal Reserve interest rate cuts and liquidity easing supporting positive momentum for the crypto market.

However, there are also risks that cannot be ignored. Trade conflicts, budget deficits and possible interest rate increases could have a negative impact on the markets. At the same time, however, productivity growth, supported by technologies such as artificial intelligence, could help offset some of the macroeconomic volatility and support risky assets.

Overall, Coinbase states that the current state should perhaps be viewed as a reset rather than a doom for the market. The focus on long-term fundamentals and the return of institutional interest could steer the crypto market in a positive direction.

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