BTC poised for December recovery on ‘macro tailwinds,' Fed rate cut: Coinbase

💡 DMK Insight

Coinbase’s December recovery prediction hinges on global M2 liquidity and interest rates, but Powell’s comments could cap gains. Traders should pay close attention to the interplay between liquidity and interest rates. If M2 continues to rise, it could signal more capital flowing into risk assets, including crypto. However, Powell’s remarks often steer market sentiment, and any hawkish tone could lead to volatility. Watch for key resistance levels in Bitcoin and Ethereum, as a break above recent highs could confirm bullish sentiment. On the flip side, if Powell hints at maintaining or increasing rates, expect a pullback in crypto prices, particularly if they test support levels. Keep an eye on the next FOMC meeting and any economic data releases that could influence M2 growth. The immediate focus should be on how traders react to Powell’s statements, especially if they coincide with liquidity trends. A cautious approach might be warranted until we see clearer signals from the Fed.