Coinbase Institutional reported an improvement in liquidity until April 2026.
The Federal Reserve cut interest rates by 25 basis points and launched Treasury bond purchases worth $40 billion per month.
Coinbase considers this step as support for liquidity rather than a full quantitative easing program.
Industry leaders expect a stronger cryptocurrency cycle in 2026.
Volatility remains, but infrastructure and risk management have improved.
Coinbase Institutional released a visionary report as 2025 approaches its end. The company emphasized an improvement in liquidity conditions in international markets. It noted the expansion of its reserves until April 2026. This trend is an indicator of the gradual easing of financial pressures. The Federal Reserve's rate has recently been reduced by 25 basis points. It also announced the purchase of treasury bonds up to $40 billion per month.
These actions by Coinbase are seen as support for high-risk assets. The company did not describe this step as full monetary easing. However, it does not rule out the impact of liquidity. Larger amounts of cash are being injected into the market. Cryptocurrency markets typically respond to such shifts. This arrangement provides a more positive environment after a tough year.
Institutional positioning and hidden liquidity \u003cc-65/\u003e
Coinbase frames Federal Reserve movements within the context of practical liquidity support. Reserves are stabilized through short-term purchases of treasury bonds. Low interest rates reduce leverage pressure. These dynamics are of concern to institutional investors. Many funds have reduced their exposure during 2025. Coinbase indicates that capital is gradually repositioning now. Institutions believe in the importance of clarity over speed. Liquidity is enhanced to allow for longer-term plans.
This climate encourages holding assets instead of speculation. Another aspect that Coinbase focuses on is adhering to recent comments from industry leaders. Hunter Horsley, CEO of Bitwise, predicted a healthy bull cycle in 2026, compared to what he described as a lost bear market in 2025. Coinbase shares this view, focusing on rebuilding the structure rather than sudden price spikes.
However, volatility continues to affect the transition phase \u003cc-70/\u003e
Coinbase does not ignore risks. The company points to an example of a $19 billion liquidation in cryptocurrencies in October 2025. The sell-off followed Bitcoin's drop to $104,000 after reaching $122,000. Losses have been amplified across leveraged chains. Disruptions on the platform side exacerbated the situation. These incidents highlight the sensitivity of cryptocurrency markets to liquidity shocks. Coinbase confirms that volatility is part of the transition phase.
Overall uncertainty still affects the markets. Sentiment changes are also influenced by regulatory developments. However, the company focuses on understanding the implications and learning from them. Dealing with risks has become more cautious on the part of institutions. Infrastructure has improved compared to previous cycles. These factors create system fragility. Coinbase trusts that the market will be able to mitigate volatility in the coming years (2026).
Framework for the next cycle \u003cc-10/\u003e
Coinbase bets on structure rather than hype. This is based on expanding liquidity and increased institutional participation. Rate cuts reduce opportunity costs. Financial markets are stabilized through government bond purchases. This mix of forces creates a potential path for recovery. Coinbase expects gradual growth rather than a rapid explosion. The company considers 2026 a year to confirm the trend. Cryptocurrencies can be beneficial as capital returns to developing assets. Coinbase advises patience, emphasizing preparation over prediction.
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