The crypto market may return to growth as early as December.
Date: 2025-12-08 Author: Henry Casey Categories: BUSINESS
Experts at the crypto exchange Coinbase see signs of a possible recovery in the cryptocurrency market as early as December 2025. They estimate that current developments in the global economy and financial markets are creating a favorable environment for a return of interest in risky assets, including digital currencies. Analysts cite the situation in the United States as a key factor influencing investor sentiment.
According to forecasts, the likelihood of the Federal Reserve cutting its benchmark interest rate by the end of December has reached 92%. Such a move traditionally boosts liquidity and stimulates capital inflows into riskier market segments. Coinbase notes that expectations of monetary easing are one of the main drivers of a possible upward reversal in the crypto market.
Analysts cite the gradual recovery of liquidity as further confirmation of the improving situation. After a prolonged period of investor caution, trading volumes are beginning to stabilize, which could pave the way for a new uptrend. Experts emphasize that interest in speculative assets related to artificial intelligence is still ongoing and far from over. This is supporting overall activity in the crypto market.
The review devotes special attention to the foreign exchange market. According to Coinbase specialists, short positions against the US dollar are becoming increasingly attractive, which could also contribute to the redistribution of capital into alternative assets, including cryptocurrencies. A weakening dollar traditionally creates favorable conditions for the growth of digital currencies.
It's worth noting that back in October, Coinbase analysts warned of possible market weakness in November. This forecast was based on data from their proprietary M2 Money Supply Index. At the time, the experts indicated that the period of decline could give way to growth towards the end of the year. Current indicators, they say, generally support this scenario.
The company believes that the current situation could be the starting point for a new growth impetus. If current trends continue, December could lay the foundation for a more sustainable recovery in the crypto market early next year. However, analysts emphasize that the market remains sensitive to external factors, including regulatory decisions and macroeconomic reports.
Amid optimistic expectations, more cautious forecasts are also being voiced. Previously, a Bloomberg expert suggested the possibility of a deep correction in Bitcoin's price, all the way to $50,000. Such forecasts remind investors of the high volatility of cryptocurrencies and the fact that even under favorable conditions, the market remains unpredictable.
Nevertheless, Coinbase believes that the combination of expected rate cuts, restored liquidity, and continued interest in innovative sectors provides grounds for expecting an improvement. If these factors continue to intensify, December could truly become a turning point for the entire cryptocurrency market.
