Coinbase Predicts Potential December Recovery for Crypto Markets
- Coinbase Institutional notes improving liquidity and macroeconomic shifts may favor Bitcoin.
- Odds of a Federal Reserve rate cut next week are at 93% on Polymarket and 86% on CME’s FedWatch.
- Coinbase’s internal M2 index shows improving liquidity conditions impacting asset prices.
- The firm previously anticipated a weak November followed by a rebound based on similar indicators.
- Institutional developments include Vanguard’s reversal on crypto ETF policies and Bank of America allowing up to 4% portfolio allocations in crypto.
The expected Federal Reserve rate cut could significantly influence market dynamics, potentially benefiting risk assets like Bitcoin. Improved liquidity conditions, as indicated by Coinbase’s metrics, further support this outlook.
As Bitcoin shows signs of recovery from recent lows, the anticipated rate cut odds and institutional interest highlight key factors driving market sentiment. (Source)
