Coinbase (NASDAQ:COIN) has maintained a neutral outlook for the crypto market in Q2, citing persistent macroeconomic uncertainty while pointing to early signs of stabilization across major digital assets.

Macro Forces Dominate Near-Term Outlook

In its latest Charting Crypto report, Coinbase said global factors, including inflation risks, potential oil supply disruptions, and slowing economic growth, are continuing to drive market behavior.

The firm noted that while crypto-specific developments such as CLARITY Act and Post-Quantum Cryptography remain relevant, they are currently overshadowed by broader macroeconomic conditions.

As a result, Coinbase recommends a balanced approach to risk and return in the near term.

Despite the cautious stance, the report highlighted improving technical indicators and the possibility of easing geopolitical tensions as factors that could support a market recovery later in the quarter.

However, Coinbase warned that risks remain skewed to macro developments.

Bitcoin Undervalued, Ethereum Moves Into Hope

Bitcoin (CRYPTO: BTC) is widely seen as undervalued, according to survey data cited in the report.

Around 75% of institutional investors and 61% of non-institutional participants believe Bitcoin is trading below its fair value.

Coinbase added that expectations for Bitcoin dominance have stabilized, rather than continuing to rise.

Sentiment around Bitcoin shifted from anxiety to fear following the February sell-off but has since improved, moving toward a more optimistic stance in April as prices stabilized.

For Ethereum (CRYPTO: ETH), Coinbase said sentiment has progressed from a capitulation phase earlier in 2026 into what it describes as a "hope" phase.

The firm noted that Ethereum spent much of the first quarter under pressure but began to show early signs of recovery in April, reflecting a gradual improvement in market confidence.

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