Coinbase: BTC entering recovery phase this month

The cryptocurrency market is entering a recovery phase in December, according to a Dec. 5 report from Coinbase cited by BeInCrypto. The report attributes this to several factors, including improved liquidity as expectations for a U.S. Federal Reserve interest rate cut reach 90%. Additionally, the M2 money supply has hit an all-time high of $22.3 trillion, while selling pressure from long-term holders has significantly diminished, easing supply constraints on Bitcoin. Coinbase added that the market environment is becoming more favorable with new capital inflows, which could facilitate the return of risk-on funds.