Key Market Indicators and Outlook
Coinbase predicts a December crypto recovery due to improved liquidity and a 92% probability of Fed rate cuts. This outlook primarily impacts Bitcoin (BTC), Ethereum (ETH), and major large-cap assets.
Coinbase's anticipation of a crypto rebound stems from improved liquidity conditions and higher rate-cut probabilities. This outlook may influence the broader market dynamics, particularly affecting Bitcoin, Ethereum, and other major cryptocurrencies.
Coinbase's institutional research suggests a December recovery due to enhanced liquidity and macroeconomic factors. The analysis points to conditions like an improved rate-cut probability by the Federal Reserve influencing predictions of market increases. BTC and ETH are likely to benefit from these conditions.
"We think crypto could be poised for a December recovery as liquidity improves, Fed cut odds jump to 92% (as of Dec 4), and macro tailwinds build."
Factors Influencing the Recovery
The research was conducted by Coinbase's Institutional Research team. The December recovery expectation is aligned with improving liquidity, driven by favorable macroeconomic variables. Coinbase's internal leadership, including CEO Brian Armstrong, supports a vision for broad market evolution.
The anticipated impact on the crypto market includes a potential rebound for assets like BTC and ETH, as liquidity improves. Additionally, Coinbase's actions, such as internal wallet migrations, demonstrate the structural setup for such a market recalibration.
Historically, market recoveries during periods of improved liquidity correspond with a general uplift in major assets. This parallels scenarios post-2018 when similar financial conditions aligned with industry upturns. As such, this forecast relies on historical macroeconomic trends suggesting potential outcomes.