🔥 Coinbase signals a return of capital – December could be the explosion point for the Crypto market?
Coinbase Institutional has just shared an important signal: global liquidity is recovering strongly as M2 Money Supply continues to hit new peaks, laying the groundwork for a strong upward movement of crypto in December.
According to data from Coinbase:
• Liquidity is improving significantly – The global M2 index has been steadily increasing since September 2024. When capital is unlocked, risk assets like Bitcoin are often the first to attract funds.
• The probability of the Fed cutting interest rates is 92% (as of 4/12) – A low-interest-rate environment is always a major catalyst for crypto, as cheap capital leads to a flow towards higher-yielding assets.
• The “AI bubble” has yet to burst – This means that capital in technology is still abundant and widespread. When high-growth sectors attract money, crypto often lags behind but increases stronger due to its sensitivity to liquidity.
• The USD is entering a weakening trend – Shorting USD is becoming more attractive, making it easier for global capital to return to risk markets, including Bitcoin and altcoins.
👉 Considering all factors: increasing liquidity + expectations of Fed rate cuts + weakening USD + strong technology capital flow, Coinbase evaluates that the market is entering a phase of “ready to recover.”
If this scenario holds true, December could become the next explosive month for crypto.
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