Coinbase Predicts Crypto Market Recovery: Fed Rate Cuts & Improved Liquidity Boost Bitcoin (BTC) & Ethereum (ETH)

Analysts at leading cryptocurrency exchange Coinbase are forecasting a significant recovery for the crypto market. In a recent research note, they highlighted two key positive drivers: improving liquidity conditions and increasing probabilities of interest rate cuts by the U.S. Federal Reserve. The report suggests that these macroeconomic factors are creating a favorable environment for digital assets like Bitcoin (BTC) and Ethereum (ETH). Coinbase notes that market liquidity has shown marked improvement, reducing volatility and fostering stability. Furthermore, shifting expectations toward a less restrictive monetary policy are reducing headwinds for risk assets, including cryptocurrencies. This optimistic outlook from a major industry player signals growing institutional confidence in the sector's rebound potential.