The crypto market is showing strong signs of a December comeback, and this time the momentum is backed by institutional confidence, rising liquidity, and macroeconomic shifts favoring risk-on assets like Bitcoin ($BTC ).
According to Coinbase Institutional, one of the world’s most trusted crypto research and trading platforms, the upcoming weeks could be crucial for a broader market recovery. Their market note released on December 6 highlights multiple bullish catalysts that traders should not ignore.
🔥 Why Coinbase Expects a Crypto Recovery in December. Federal Reserve Rate Cut Odds Climb to 93%
Markets are now pricing in:
93% chance of a rate cut (Polymarket)
86% chance (CME FedWatch)
A Fed rate cut historically boosts liquidity across global markets and drives capital toward risk assets like BTC, ETH, and altcoins. If the Fed confirms this next week, we may witness a fresh wave of buying interest.
🔥 Liquidity Conditions Are Getting Better
Coinbase’s internal M2 Liquidity Index, which measures monetary flow across financial markets, shows a positive rise.
The firm had accurately predicted a weak November followed by a rebound, and current indicators show the recovery is now unfolding.
Higher liquidity =📈💲💸💵💲
✔ More trading
✔ More upward volatility
✔ Stronger price stability for BTC and major altcoins
🔥 Institutional Tailwinds Strengthen BTC Outlook
Several major institutional moves are fueling confidence:
✅ Vanguard reverses its crypto ETF policy
This is big. Vanguard, a giant in global finance, is now open to crypto ETF exposure. This signals major acceptance of Bitcoin as a long-term asset.
✅ Bank of America gives greenlight for crypto allocations
BoA wealth advisers can now recommend:
👉 Up to 4% crypto allocation in client portfolios
This could open doors to billions in institutional inflow.
As a result, even though BTC was down earlier in the week, it bounced strongly from its recent lows—backed by deep-pocketed buyers.
🔥 The “AI Bubble” Has Not Burst – and That’s Good for Crypto
Coinbase also noted that while many expected the AI bubble to cool off in 2024-2025, it’s still going strong.
Why this matters:
Tech sector strength = more investor confidence
Investors shift profits from AI → Bitcoin
Risk appetite rises across the board
🔥 Weakening U.S. Dollar Supports BTC
A weaker dollar = stronger performance for:
Bitcoin
Gold
Commodities
Risk assets
Historically, BTC thrives when USD indices fall.
Current decline in the U.S. dollar is another confirmed bullish signal.
🚀 What This Means for Crypto Traders Right Now
•BTC recovery may accelerate if the Fed confirms its rate cut.
•Liquidity improvements can spark a mini-bull run.
•Institutional adoption signals long-term confidence.
•Perfect time to analyze BTC, $ETH , and high-cap altcoin positions.
Want to Trade Bitcoin Based on This Market Advantage?
👉 Click here to explore $BTC market now
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