Coinbase Makes Bold Bitcoin Prediction For December Despite Market Downturn

Coinbase anticipates a recovery phase for the crypto market in December, citing improving liquidity, tighter spreads, and stronger macro support, despite recent market downturns. Key factors include rising expectations for a Federal Reserve rate cut, with CME FedWatch showing nearly 90% odds for a cut by the December 10 meeting. This aligns with the M2 money supply hitting a record high of $22.3 trillion, suggesting increased liquidity which historically supports Bitcoin performance. Furthermore, on-chain data indicates that selling pressure from long-term Bitcoin holders (wallets older than five years) has significantly decreased, dropping from about 2,350 BTC to 1,000 BTC daily on a 90-day moving average. Coinbase suggests that reduced selling from these 'OG' holders, combined with appealing short-dollar positioning and momentum in the AI trade, sets a positive stage for Bitcoin to potentially achieve its first positive December close since 2023.

(Source：BeInCrypto)