Coinbase | Bitcoin Set for December Recovery Amid Liquidity Hints
Edited By
John Carter
The crypto community is buzzing as Coinbase's research team hints at a potential Bitcoin recovery this December. Key macro conditions show improving liquidity and a 92% chance of a Federal Reserve rate cut on December 9-10. However, analysts warn of risks depending on Fed Chair Jerome Powell's forthcoming remarks.
What the Numbers Say
Coinbase's analysis highlights several positive indicators:
As of December 4, the likelihood of a Fed rate cut surged to 92%—a figure that has historically boosted risk assets like cryptocurrencies.
They note that global money supply has been on the rise, adding to the optimistic sentiment.
Previously, Coinbase forecasted a drop in Bitcoin's value for November, predicting a recovery in December. Currently, Bitcoin is trading around $90,000, down from peaks near $100,000 last month.
The Wildcard: Powell's Comments
Market experts point out that Powell’s statements could swing sentiment dramatically. If he adopts a hawkish tone about future 2026 policies during his announcement, it could hamper any recovery, echoing previous market sell-offs. One user observed, "Last time we had rate cuts confirmed and yet look where we are."
Mixed Sentiments Among People
Investor sentiment remains cautious. People express mixed views:
Skepticism exists: Some believe that even a rate cut might not be beneficial for the market.
Optimism for Hassett: Speculation about Kevin Hassett's candidacy for Fed Chair in 2026 has stirred hope, as he is perceived as more dovish, potentially favoring crypto.
"One positive catalyst is speculation that Kevin Hassett might become the next Fed Chair in 2026."
Key Takeaways
🔹 92% chance of a Fed rate cut boosts Bitcoin hopes.
🔻 Market sentiment remains cautious, with many hesitating to invest.
💬 "These kinds of things are always said around the time of the Fed rate cut," reflects ongoing skepticism.
🔸 Hassett's potential appointment as Fed Chair is viewed as a positive influence for cryptocurrencies.
Despite the encouraging environment, many remain wary. The market seems to be on edge, closely watching Powell's every word over the coming days. Could a single comment derail the bullish outlook? Only time will tell.
What Lies Ahead for Bitcoin and the Market
Experts see a significant chance for Bitcoin to rebound if Powell indicates a more accommodating stance in his comments. Analysts estimate there's about an 80% likelihood Bitcoin could breach the $100,000 mark again if recent liquidity trends continue to favor cryptocurrencies. However, a shift to a hawkish tone by Powell could derail this optimism, resulting in a substantial sell-off. As the community watches closely, mixed sentiments will influence investors' decisions leading into December, making this period crucial for Bitcoin's potential recovery.
A Unique Reflection from History
In the realm of gold mining during the late 19th century, many hopeful prospectors flocked to California, driven by the lure of fortune. Not all found golden nuggets; some discovered that fluctuating market sentiments governed their fate. Like those miners who depended on word of mouth and market rumors, today’s crypto investors are equally swayed by the slightest hint from Powell. The stories of both past and present demonstrate how quickly fortunes can change based on perceptions rather than reality, underlining the volatility that characterizes both sectors.