Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Coinbase Sees Crypto Recovery Ahead as Liquidity Improves and Fed Rate Cut Odds Climb The crypto exchange also took note of a so-called AI bubble that continues to go strong and a weaker U.S. dollar. By Francisco Rodrigues | Edited by Stephen Alpher Dec 6, 2025, 3:46 p.m. Coinbase (Modified by CoinDesk) What to know : Coinbase Institutional is seeing a potential December recovery in crypto, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin. The firm's optimism is driven by rising odds of Federal Reserve rate cuts, with markets pricing in a 93% chance easing next week, and improving liquidity conditions. Several recent institutional developments, including Vanguard's crypto ETF policy reversal and Bank of America's greenlighting of crypto allocations, have contributed to bitcoin's rebound from recent lows. Coinbase Institutional has said crypto markets may be poised for a December recovery, citing improving liquidity and a shift in macroeconomic conditions that could favor risk assets like bitcoin BTC $ 89,923.31 . In a market note shared Dec. 6 , the firm pointed to rising odds of a Federal Reserve rate cut next week, now priced at 93% on Polymarket and 86% on the CME’s FedWatch , as a central driver. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Liquidity conditions are also improving, based on Coinbase’s internal M2 index, which tracks monetary flows that impact asset prices. The firm had previously predicted a weak November followed by a rebound, citing similar indicators. The note also flagged additional tailwinds that could support the rally, among them the expected bursting of the so-called AI bubble that hasn’t happened and a weaker U.S. dollar. Though remaining lower for the week, bitcoin did manage to rise from its worst levels, perhaps fueled by institutional headlines like Vanguard’s crypto ETF policy reversal , Bank of America greenlighting its wealth advisers to recommend allocations of as much as 4% of portfolios in crypto . Coinbase Bitcoin News Больше для вас Protocol Research: GoPlus Security Автор CoinDesk Research 14 нояб. 2025 г. Commissioned by GoPlus Что нужно знать : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. View Full Report More For You How Much Longer Until We Consider the Bitcoin Power Law Model Invalid? By James Van Straten , AI Boost | Edited by Oliver Knight 47 minutes ago As the gap between spot bitcoin price and the power law widens, investors are left questioning whether mean reversion is coming or if another cornerstone model is approaching its end. What to know : Bitcoin has largely tracked its long standing power law trend this cycle, though it now trades about 32% below the model. Earlier models like stock to flow have already failed, with its current implied valuation near $1.3 million per bitcoin Read full story Latest Crypto News How Much Longer Until We Consider the Bitcoin Power Law Model Invalid? 47 minutes ago The Grandma Test: When Your Mom Can Use DePIN, Mass Adoption Has Arrived 47 minutes ago Anthony Pompliano's Bitcoin Treasury Firm ProCap BTC Closes SPAC Merger Deal 1 hour ago Stablecoin Adoption Is ‘Exploding' — Here's Why Wall Street Is Going All-In 1 hour ago LUNC Surges Over 160% in a Week as Do Kwon Sentencing and Token Burns Draw Traders 2 hours ago Euro Stablecoin Market Cap Doubles in Year After MiCA, Study Finds 2 hours ago Top Stories Euro Stablecoin Market Cap Doubles in Year After MiCA, Study Finds 2 hours ago Anthony Pompliano's Bitcoin Treasury Firm ProCap BTC Closes SPAC Merger Deal 1 hour ago Small Texas Lender Monet Joining Field of Crypto-Focused Banks 15 hours ago U.S. Prosecutors Seek 12-Year Sentence for Terraform Founder Do Kwon in Crypto Fraud Case 22 hours ago Trump’s Security Strategy: Impact on Bitcoin, Gold, Bond Yields 22 hours ago Turkey's Paribu Buys CoinMENA in $240M Deal, Expanding Into High-Growth Crypto Markets 23 hours ago