[Breaking News] Coinbase Predicts! What's the Truth About the December Cryptocurrency Recovery? A Super Explanation Based on Interest Rates and Liquidity

👋 "Have you given up on Web3 News because it's too difficult? Today, I'll explain it in a super easy-to-understand way!"

"Another cryptocurrency news? What will happen in the end?" I'm sure there are many people who feel this way. Today, I'll summarize the recent market movements in a way that anyone can understand, focusing on the opinions of experts who see them as a sign of a December recovery. To put it simply,US interest rates are more likely to fall, improving the flow of money around the worldThis is shedding some light on the cryptocurrency market. Just knowing this might change the way you look at the news!

Coinbase predicts crypto market recovery in December

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First of all, what has been inconvenient so far?

When you watch the news in the world of virtual currencies, all you see is "price went up" or "price went down," so it's hard to understand what the real problem is. For example, when you transfer money internationally through a bank in your daily life, it can take several days and the fees can be ridiculously high. In the same way, in the virtual currency market,Liquidity (ease of money flow)When the market becomes unstable, the price fluctuates suddenly. In the recent market, the price was weak around November, and investors were worried about what would happen next. For example, the price of Bitcoin$8 rangeThis meant that people were stuck in a traffic jam, and there were fewer opportunities for them to buy and sell. This is like a congested road where cars can't move forward. When the amount of money in the entire economy (an indicator called M2) decreases, this kind of congestion is more likely to occur.

Furthermore, if interest rates from the US central bank (the Fed) remain high, the benefits of holding "non-profitable assets" like cryptocurrencies will diminish, and people will flee to safety. Things get even more complicated when Asian countries, such as Japan's central bank, start talking about raising interest rates. There are also concerns that investments using yen will be liquidated, causing a shock to the market. This kind of "macro tug-of-war" is what influences the price of cryptocurrencies. If you are having trouble compiling white papers and documents, try using AI tools.GammaIt automatically creates slides, making it easy to organize your trends.

Even elementary school students can understand! This evolution's key points

The highlight of this news is that a team of experts from a major exchange called Coinbase has pointed out that "the virtual currency market may recover in December!" Simply put, the flow of money around the world is improving, and the probability of US interest rates falling is high.Over 80%It's like the rain has stopped and the roads are dry, making it easier for people to go out. When the amount of money increases, investors turn their attention to virtual currencies again. Bitcoin is89,000 dollarIt started to stabilize around the same time, and Ethereum$3,000 rangeThe size of the entire market is3 trillion dollarsIt no longer feels like things are being sold in a hurry nearby.

Technically speaking, Bitcoin works on Proof-of-Work, which is like "everyone using mining machines to dig for gold," while Ethereum works on Proof-of-Stake, which is "depositing money and receiving interest." When interest rates fall, these systems become more attractive. For example, when interest rates are high, bank deposits are profitable, but when interest rates fall, the appeal of cryptocurrencies increases, as people believe that "just holding them might increase in value."

▼How will this change things?

The future standard! Usage scenarios

So, let's imagine how this sign of recovery will affect our lives. First, let's look at it from the perspective of an investor. Imagine you're an office worker managing your spare funds. If interest rates fall, you might want to diversify your investments a little into virtual currencies. For example, just by holding Bitcoin as "digital gold," you might see its value increase.IncreaseNext, creators. If you're using Ethereum to create NFTs (a type of digital art), a booming market will make it easier to sell your work. With the AI ​​bubble continuing, it seems likely that creative work combining technology will increase. Finally, there are general users. DeFi (decentralized finance, or bankless lending and borrowing) will enable overseas remittances with low fees. Just as the Indian central bank lowered interest rates and injected money, improving the flow of money across Asia will make everyday payments easier.

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The future of Web3

If this trend continues, cryptocurrencies will likely become more familiar. For example, if the network stabilizes, as with the Terra Chain update, cross-chain (transactions between different blockchains) will become smoother. In the future, we may see a world where everyday payments are instantly completed with cryptocurrencies. However, there is always the risk of regulatory changes and hacking. Since rules may change from country to country, security should always be your top priority.

Summary: Start with a small amount!

Today, I explained the current state of the cryptocurrency market, focusing on Coinbase's recovery forecast. I think you can see that macro trends drive the market. If you want to gather information more efficiently, please use the linked toolMake.comUse it to automatically gather news!

👨‍💻 Author: SnowJon (WEB3/AI Practitioner/Investor)

He is a researcher who uses the knowledge he gained from the University of Tokyo's Blockchain Innovation course to practically disseminate information on WEB3 and AI technology.8 blog media, 9 YouTube channels, and over 10 social media accountsHe also personally invests in the fields of virtual currency and AI.
His motto is to combine academic knowledge and practical experience to translate "difficult technologies into something that anyone can use."
*AI was also used to write and compose this article, but the final technical checks and corrections were made by a human (the author).

Reference links and information sources

• Original news article/official website: BTC poised for December recovery on 'macro tailwinds,' Fed rate cut: Coinbase
• Related White Papers/Documentation: Coinbase Institutional Research
• Reference media articles: Coinbase Says Crypto Market Poised For Recovery As Liquidity Improves
• Further analysis: Crypto Tailwinds on Tap: Coinbase