Coinbase Report Analyzes 2024 Bitcoin Halving and Ethereum’s Cancun Upgrade Impact

Coinbase’s recent 2024 Market Outlook report was followed by a fresh analysis from its institutional arm, focusing on the pivotal market happenings linked to two leading cryptocurrencies: bitcoin and ethereum. This new report, titled “Q1 2024 Guide to Crypto Markets”, underscores key events that are set to influence the future direction of these digital currencies.

Coinbase Institutional Study Delves Into Bitcoin’s Halving, Ethereum Cancun Upgrade


Coinbase Institutional, in partnership with Glassnode, published a new report about the metrics and trends tied to today’s two leading cryptocurrencies. The study provides a comprehensive analysis of the critical aspects of the crypto industry, shining a light on the intricate workings of the crypto market.

According to the report, the Bitcoin network is approaching a pivotal moment with its next halving expected in the second quarter of 2024. This event, which historically has had a profound impact on BTC’s market dynamics, is again set to be a focal point for investors. The report notes, “We think it’s possible that the next Bitcoin halving in 2Q24 could have a positive impact on the token’s performance.” However, the Coinbase report also cautions that the limited historical data makes the outcomes somewhat speculative.

The Coinbase report states:

With only three halving events historically, we have yet to see a clear pattern fully emerge, particularly as previous events were contaminated by factors like global liquidity measures.


Ethereum, on the other hand, is gearing up for the Cancun upgrade, anticipated in the first quarter of 2024. The study says that this upgrade, following the successful Shapella upgrade, is expected to further enhance Ethereum’s scalability and security. The introduction of Proto-Danksharding, as outlined in the report, is particularly noteworthy. The technology, Coinbase researchers detail, aims to make layer two (L2) transactions more cost-effective and significantly increase transaction throughput on the Ethereum network.

The Coinbase study also sheds light on the increasing institutional interest in crypto assets. It underscores a trend towards more mature market behavior, evidenced by decreasing volatility and a growing preference for sophisticated investment strategies. Coinbase’s report says this shift marks a new era in crypto investment, where institutional players are looking beyond mere speculation to more strategic, long-term positions.



Coinbase’s Q1 2024 guide notes that the derivatives market for both BTC and ETH has seen substantial growth, with increasing volumes and open interest. This growth indicates a deepening market and a diversification of strategies among investors. The report details, “Market participants use bitcoin derivatives for a variety of reasons, including gaining capital-efficient access to BTC, hedging spot exposure, mitigating mining risks, and hedging other tokens that don’t have liquid and regulated derivatives.”

Coinbase Global (Nasdaq: COIN) could witness a highly lucrative 2024, assuming the role of custodian for several prominent spot bitcoin exchange-traded funds (ETFs), subject to regulatory green light. Additionally, the firm’s stock has soared, registering a remarkable 78% increase in the past six months, with COIN shares climbing an impressive 331% over the previous year. The latest projections suggest that 2024 might significantly outshine the cryptocurrency downturn of 2022, barring any unforeseen extraordinary developments.

What do you think about Coinbase’s latest report on 2024? Share your thoughts and opinions about this subject in the comments section below.