**Coinbase Report Shows Strong Institutional Confidence in Bitcoin Amid Market Volatility**
Coinbase has released its fourth-quarter outlook report titled **“Navigating Uncertainty”**, revealing strong institutional confidence in Bitcoin despite recent market fluctuations. The report, produced in collaboration with research firm Glassnode and published on October 19, 2025, is based on a survey of 124 institutional investors. Key findings indicate that 67% of these investors have a positive outlook for Bitcoin over the next three to six months.
### Institutional vs. Retail Investor Sentiment
The survey highlighted differing perspectives between institutional and retail investors regarding the current market cycle. About 45% of institutional investors believe that markets are in the late stages of a bull run, compared to just 27% of non-institutional investors who hold the same view.
### Digital Asset Treasury Companies Accumulate on Dips
Digital asset treasury companies have been significant players in the crypto markets this year, strategically buying assets during price dips. For instance, BitMine, chaired by Tom Lee, acquired over 379,000 Ether worth nearly $1.5 billion after the market crash pushed Ether below $4,000.
Additionally, Michael Saylor revealed on Sunday that his firm, which currently holds $69 billion in Bitcoin, may increase its BTC holdings further. Despite pullbacks in equity markets, crypto reserves held by digital asset treasury companies have remained robust.
### Expectation of Federal Reserve Rate Cuts
Coinbase forecasts two more Federal Reserve rate cuts before the end of 2025. These anticipated cuts could encourage investors to shift away from money-market funds and toward risk assets like cryptocurrencies. Further, China’s fiscal and monetary stimulus measures are expected to attract more investors to the market.
Liquidity remains a pivotal factor. Coinbase’s Global M2 Money Supply Index, which has historically led Bitcoin price movements by around 110 days, started the quarter on a supportive note.
### Stablecoins and On-Chain Activity Reach New Highs
Stablecoin supply and monthly transaction volumes are at or near record levels, reflecting increased on-chain payment and transfer activity. Moreover, the infrastructure supporting U.S. spot ETFs for Bitcoin and Ether continues to expand, enhancing market access for traditional investors.
### Bitcoin Continues to Dominate
In the current environment, Coinbase favors Bitcoin over other cryptocurrencies, emphasizing its role as “digital gold” amid fiscal and monetary uncertainty. Ether also shows promising momentum, aided by ongoing scaling improvements that shift activity to layer-2 networks and reduce fees.
Bitcoin recently surged past $109,000 after reclaiming the $108,000 threshold, while Ether briefly climbed above the $4,000 mark. Despite ongoing volatility following the market hiccup on October 10, markets remain steady yet cautious.
### Potential Risks and Market Outlook
The report highlights some notable risks moving forward. A liquidity fade in November is possible, and uncertainty persists due to missing U.S. economic data stemming from government issues. Questions about the long-term sustainability of digital asset treasury companies’ business models remain, particularly in light of recent equity market weaknesses.
Coinbase also points out that the October 10 price slide was driven by heavy leverage intersecting with thin order books. Some exchanges’ auto-deleveraging mechanisms capped short positions held by market makers, further draining liquidity. Though prices stabilized over the weekend, investor sentiment continues to be tentative.
### Conclusion
Overall, Coinbase maintains a positive outlook, emphasizing that favorable liquidity conditions, progress in policy, and expanding on-chain usage are supportive factors for the crypto market. The growing presence of stablecoins and maturing ETF infrastructure are strengthening the market structure.
Bitcoin remains best positioned to lead the cryptocurrency space if these supportive elements persist through the end of the year. Institutional confidence and robust market frameworks suggest that the coming months could be positive for digital assets, with Bitcoin at the forefront.
—
*For more detailed insights, read the full Coinbase Q4 Outlook report: “Navigating Uncertainty.”*
https://coincentral.com/two-thirds-of-institutions-bullish-on-bitcoin-for-next-six-months-coinbase-survey-shows/