Coinbase Predicts Bitcoin Rally with U.S. Economic Growth

Coinbase Research forecasts a Bitcoin rally in the second half of 2025, citing U.S. economic growth, favorable Fed policy, and regulatory progress as key drivers.

Factors Contributing to the Bitcoin Rally

Coinbase Research recently released their 2025 Crypto Market Outlook, predicting a Bitcoin rally. This forecast is driven by projected economic growth, Federal Reserve actions, and improving crypto regulation in the U.S. A rally is expected in 2025.

The study shows Bitcoin (BTC) could benefit from increased institutional investment linked to economic indicators. Brian Armstrong, as CEO of Coinbase, often leads insights in the crypto sector. Regulatory clarity plays a central role in these forecasts.

Market Dynamics and Investor Sentiment

The impact on the crypto market revolves mainly around Bitcoin. A decrease of 550,000 BTC in exchange reserves in one year underscores long-term holding. Investor confidence is on the rise, with demand pressures mounting in the market.

Financial shifts may favor institutional investors, contributing to a potential price surge. U.S. regulatory developments and clearer legislation may encourage an influx of capital, while Fed rate cuts could further accelerate market dynamics.

Experts note that previous Bitcoin accumulations preceded bull markets. Institutional activities are shaping market expectations, with observed trends suggesting a similar trajectory of price movements. Historically, regulatory clarity aligns with increased investment. Coinbase Research Team noted, “A potential Bitcoin rally in H2 2025 [will be] driven by US economic growth, Fed rate cuts, and crypto regulatory clarity.”

Outlook for the Crypto Market

Potential outcomes involve an expanded crypto market bolstered by regulation and economic health. On-chain metrics show increased U.S. interest in Bitcoin, evidenced by the Coinbase Premium metric peak. These elements together suggest a bullish outlook for 2025.