TLDR
- Coinbase projects strong growth in the crypto markets during the second half of 2025.
- An improving global economic outlook is expected to support the upward trend in digital asset prices.
- The Federal Reserve is likely to cut interest rates by late 2025, which could boost market liquidity.
- Corporate demand for digital assets is rising, with over 228 public firms holding large amounts of bitcoin and other tokens.
- New accounting rules now allow companies to report crypto assets at fair market value, which encourages more adoption.
Coinbase Institutional forecasts strong momentum in the crypto markets during the second half of 2025. The firm identifies three key trends: improved macroeconomic conditions, rising corporate demand, and advancing regulatory frameworks. These dynamics are expected to accelerate growth and introduce new structural changes across the digital asset landscape.
Improving Macroeconomic Outlook Boosts Crypto Markets
The broader economic landscape is showing signs of recovery, which supports sustained growth in the crypto markets. Coinbase points to reduced recession risks and a shift away from the earlier threat of stagflation. US economic indicators suggest steady growth, while global central banks continue to expand their balance sheets.
The Federal Reserve is expected to reduce interest rates by late 2025, adding more liquidity to the financial system. Higher liquidity levels, including a growing M2 money supply, provide favorable conditions for asset price stability. Therefore, digital asset prices are unlikely to revert to 2024 levels, reinforcing a bullish outlook for the crypto markets.
This environment also benefits market capitalization expansion across digital assets, especially with stable inflation and supportive fiscal policies. As confidence strengthens, the crypto markets are poised for long-term gains. The combination of macroeconomic improvement and accommodative monetary policy supports the current upward trend.
Corporate Demand Drives Short-Term Expansion
Rising corporate participation plays a critical role in shaping the crypto markets in the near term. Approximately 228 public firms now hold over 820,000 BTC, with growing allocations to ETH, SOL, and XRP. These holdings indicate increasing adoption of digital assets as corporate balance sheet tools.
Galaxy Digital notes that around 20 companies are using leveraged funding models, originally adopted by Strategy, to enhance returns. Updated FASB rules now allow firms to report digital assets at fair market value, eliminating prior reporting constraints. This accounting change provides greater transparency and incentivizes more firms to allocate capital to crypto markets.
A new trend includes publicly traded crypto vehicles accumulating assets via equity and convertible bonds. Most debts linked to these models mature post-2029, limiting immediate risks. Firms with reasonable loan-to-value ratios can refinance, avoiding forced liquidations and preserving crypto market stability.
Regulatory Clarity Enhances Long-Term Market Confidence
Progress on legislation supports a more structured regulatory environment for the crypto markets. New bills such as the STABLE Act and GENIUS Act introduce compliance standards and reserve rules for stablecoins. Lawmakers aim to unify these frameworks by August 2025, enabling comprehensive oversight.
Efforts also focus on defining roles for the SEC and CFTC through the CLARITY Act. This act, along with FIT21, aims to remove ambiguity in crypto market regulation. The shift from enforcement-based action to legislative clarity signals a more consistent regulatory future.
As regulatory certainty increases, the crypto markets benefit from reduced legal uncertainty and broader institutional acceptance. These advancements create a foundation for continued innovation and capital inflow. Stronger legal structures contribute directly to long-term crypto market development.
