Remain vigilant: COIN could drop to the $220s

$Coinbase(COIN.US)

Q2 had support from stablecoins, but now stablecoins are falling. Q3 lacks this catalyst. Trump and major financial groups likely want another round of bottom-fishing before actual interest rate cuts, so a drop is justified. Currently, crypto stocks and U.S. equities are at elevated levels.

While the future of cryptocurrencies is undoubtedly a bull market, bull markets advance through fluctuations with an overall upward trend.

If the U.S. imposes additional tariffs on the EU and the EU retaliates, coupled with unresolved tensions with China, this could intensify the decline.

The only catalyst that could trigger a market surge is interest rate cuts. Tariff policies have lost credibility—investors have grown skeptical due to inconsistent policies ("today this, tomorrow that"). Risk-averse capital may stay lightly positioned. A sustained rebound driven purely by retail investors' wishful thinking about buying the dip seems unlikely.