Coinbase Institutional said Middle East tensions outweighed weak U.S. payrolls, reviving inflation and higher-for-longer rate concerns, while rising stablecoin activity since January 2024 points to broader payment use.
Coinbase Institutional said Bitcoin’s roughly 2% decline may indicate a bottoming process even as escalating Middle East conflict overshadowed weaker-than-expected U.S. nonfarm payrolls and pushed markets back toward inflation risk and a higher-for-longer interest-rate outlook. The firm said that shift implies tighter financial conditions for long-duration risk assets and higher odds of a year-end rate hike. It also said stablecoin market capitalization, or market value, has nearly doubled since January 2024 and entity-adjusted transaction volume has risen 4 to 5 times, suggesting faster turnover and more real-world payment use.