Bitcoin Poised for December Recovery Rally as Liquidity Improves and Fed Rate-Cut Bets Surge

COINOTAG News, citing a Coinbase Institutional post, notes early signs of a recovery in the crypto space. The analysis links improving liquidity to a higher probability of a Fed rate cut, which authorities put at about 92% as of December 4, potentially enabling a December risk-asset rally. This view frames the trajectory of the crypto market recovery around macro liquidity and central bank policy signals.

Analysts emphasize that liquidity is improving and that the so-called AI bubble has not yet peaked, leaving room for price action to trend higher. The case for short USD exposure remains attractive at current levels, supporting a more constructive stance for risk assets. Coinbase Institutional previously warned of a position adjustment in October, expecting weakness in November and a December pivot, which could provide the starting line for renewed market momentum.

Investors should monitor credible liquidity metrics and central-bank communications as the key drivers of near-term performance. While the backdrop suggests a potential December recovery rally, risk controls and diversification remain essential given cross-asset volatility.