Coinbase News: Bitcoin Volatility Causes Significant Impact on Coinbase Premium

Recent developments in the cryptocurrency market have led to some notable changes in the Coinbase Premium Index. Here’s a closer look at how Bitcoin’s volatility has affected this key indicator.

Bitcoin Volatility Impacts Coinbase Premium

US investor caution has left the Coinbase Premium negative. In March, Bitcoin experienced significant volatility, starting the month around $90,000 and dipping below $80,000 by mid-March amid concerns about geopolitical tensions, aggressive US trade policies, and broader economic instability. The price recovered somewhat later in the month, stabilizing between $82,000 and $85,000. This turbulence significantly impacted the Coinbase Premium Index, which is used to gauge US investor sentiment.

Standard Chartered Cuts Ethereum’s 2025 Price Target by 60% Amid Ongoing Decline

Standard Chartered Investment Bank has adjusted its Ether price target prediction by 60%, lowering the forecast to $4,000 from $10,000 for the year 2025. This reflects a growing concern for Ether’s downward trend in the cryptocurrency market. According to Geoff Kendrick, Standard Chartered’s Head of Digital Assets Research, Layer 2 solutions like Coinbase’s Base blockchain have reduced Ethereum’s market capitalization by $50B, diverting transaction fees away from the main Ethereum network. The rise of Layer 2 networks was intended to improve scalability on the Ethereum network, but has instead contributed to the ongoing decline in Ethereum’s price.