Coinbase's latest Q4 2025 crypto forecast is generating significant buzz among traders, highlighting key macro setups, surging ETH demand, and potential altseason signals that could reshape the cryptocurrency market. According to David Duong, Head of Research at Coinbase, their custom global M2 money supply model has just flipped bullish, signaling an imminent pump in crypto assets. This proprietary model tracks global liquidity trends to predict market expansions, and its recent shift suggests that the clock is ticking for a major breakout. For traders, this forecast arrives at a pivotal moment, as Bitcoin and Ethereum have been consolidating amid broader economic uncertainties, setting the stage for strategic positioning in high-potential trades.

Decoding Coinbase's Bullish M2 Model and Its Trading Implications

At the heart of Coinbase's analysis is their global M2 model, which monitors money supply growth across major economies to forecast crypto rallies. David Duong emphasizes that this indicator has historically preceded significant uptrends, with past flips correlating to 20-50% gains in BTC and ETH within quarters. As of August 20, 2025, the model indicates accelerating liquidity, potentially driven by central bank policies and institutional inflows. Traders should watch for BTC/USD breaking above the $65,000 resistance level, a move that could validate the model's predictions and trigger a cascade of buying pressure. In terms of trading volumes, recent on-chain metrics show Ethereum's daily transaction volumes surging by 15% over the past week, according to blockchain explorers, pointing to heightened network activity that aligns with Duong's outlook on ETH demand.

For Ethereum specifically, the forecast underscores robust demand drivers, including layer-2 scaling solutions and upcoming upgrades that could enhance scalability and reduce fees. Duong notes that ETH's role in decentralized finance and NFTs positions it for outsized gains during an altseason. Traders eyeing ETH/USDT pairs might consider long positions if prices hold above the $3,200 support, with potential targets at $4,000 based on historical patterns from similar M2 signals. Market indicators like the RSI on daily charts are hovering around 55, suggesting room for upward momentum without immediate overbought conditions. Additionally, trading volumes on major exchanges have spiked, with ETH spot volumes reaching $12 billion in the last 24 hours as of this analysis, reflecting growing investor confidence amid the bullish forecast.

Altseason Signals and Cross-Market Opportunities

Beyond ETH, Coinbase's report hints at altseason signals, where alternative cryptocurrencies could outperform majors like BTC. Duong points to macro setups, such as easing monetary policies and geopolitical stability, as catalysts for broader market participation. For instance, altcoins like SOL and AVAX have shown resilience, with SOL/BTC pairs gaining 8% in the past month, indicating relative strength. Traders should monitor on-chain metrics, including total value locked in DeFi protocols, which has risen to $90 billion recently, per DeFi analytics. This uptick correlates with the M2 model's bullish flip, suggesting opportunities in diversified portfolios. However, risks remain, including potential volatility from regulatory news or stock market corrections, which often influence crypto sentiment through correlated flows from institutional investors.

Integrating this forecast into trading strategies, savvy investors might allocate to ETH and select alts while hedging with BTC perpetual futures. The emphasis on macro setups encourages a global view, where stock market indices like the S&P 500 could provide leading indicators—if equities rally on liquidity boosts, crypto could follow suit. Duong's commentary stresses that the window for entry is narrowing, urging traders to act on these signals before the breakout materializes. Overall, this Q4 outlook paints a compelling picture for bullish trades, backed by data-driven insights that could drive substantial returns in the coming months. As always, combining this with real-time market monitoring is essential for navigating the dynamic crypto landscape.