BTC poised for December recovery on ‘macro tailwinds,' Fed rate cut: Coinbase
Overview
Coinbase has indicated that Bitcoin (BTC) may experience a recovery in December, attributing this potential rebound to increasing global M2 liquidity and a forecast of lower interest rates. However, analysts caution that comments from Fed Chair Powell could impose limitations on this upward momentum.
What Happened
According to Coinbase, the anticipated recovery for Bitcoin in December is influenced by macroeconomic factors. Rising global M2 liquidity, which refers to the total amount of money in circulation or in easily convertible forms, is seen as a positive sign for potential market growth. Additionally, the expectation of lower interest rates may create a more favorable environment for investment in cryptocurrencies.
Despite these optimistic indicators, analysts express concern regarding the potential impact of remarks made by Fed Chair Powell. His statements may introduce uncertainties that could hinder Bitcoin’s upward trajectory, suggesting that while the macroeconomic landscape may be improving, external comments could play a significant role in market performance.
Impact on the crypto market
- The potential increase in global M2 liquidity may lead to higher demand for cryptocurrencies.
- Lower interest rates could encourage more investors to enter the crypto space.
- Fed Chair Powell’s comments may create volatility or limit Bitcoin’s recovery potential.
- Overall market sentiment may be influenced by macroeconomic changes and regulatory commentary.
- Analysts are closely monitoring these factors to gauge their impact on Bitcoin and the broader crypto market.
Updated: 12/6/2025, 5:19:17 PM
