Coinbase Institutional Report: October Sell-off is a Bottoming Phase Before the Next Rally, Not a Cycle Top

Coinbase's institutional monthly report states that the sell-off in October is not the end of the cycle, but rather an adjustment needed for the cycle. Excess leverage has been cleared, the fundamentals remain solid, and institutional investors are quietly returning. Smart money is gathering around EVM chains, risk-weighted assets (RWA), and yield protocols—indicating that investors are selectively reinvesting in risk rather than withdrawing.

Key conclusions: Leverage levels have improved, but liquidity gaps still exist; capital is rotating rather than flooding in—selective investment remains crucial; macro risks still exist, but structural demand is strengthening. The institution believes this is a bottoming phase before the next round of upward movement, rather than a cycle peak.