Stablecoin

Pump

<h3 class="wp-block-heading" id="h-key-insights"><strong>Key Insights:</strong></h3>
<ul>
 <li>The crypto market traded downwards over the past few weeks since the start of November but there are signs of a December recovery.</li>
 <li>Coinbase released a research report saying December opened with a sharp rise in global liquidity. The firm noted that expectations for a Federal Reserve rate cut hit 92% by December 4.</li>
 <li>There was a notable increase in USDT deposits. Such an increase in stablecoin inflows usually means traders are getting ready to act by either buying dips or repositioning.</li>
</ul>
<p>The crypto market traded downwards over the past few weeks since the start of November. However, various fundamental, policy and on-chain metrics are pointing towards a recovery in the crypto prices by the end of December.</p>
<p>Here are the top four reasons why the crypto market could pump soon.</p>
<h2 class="wp-block-heading" id="h-coinbase-sees-liquidity-jump-and-possible-crypto-market-rebound"><strong>Coinbase Sees Liquidity Jump and Possible Crypto Market Rebound</strong></h2>
<p>Coinbase released a research report saying December opened with a sharp rise in <a href="https://www.thecoinrepublic.com/2025/11/29/critical-liquidity-signals-bitcoin-btc-usd-bottom-range-at-80000-arthur-hayes/" rel="noopener noreferrer nofollow">global liquidity. </a>The firm noted that expectations for a Federal Reserve rate cut hit 92% by December 4. Analysts said this could help the crypto market find support.</p>
<p>The report highlighted Coinbase’s global M2 money supply index, which shows a steady recovery heading into late 2025. The team added that a weaker dollar may give a fresh momentum to the crypto prices.</p>
<p>Earlier in the year, Coinbase warned that October would spark a positioning reset and that November would likely stay soft.</p>
<p>Still, the exchange now believes a real reversal may finally be underway in December with the supposed AI bubble <a href="https://www.thecoinrepublic.com/2025/11/20/nvidia-stock-beats-the-ai-bubble-talk-but-a-12-jump-still-decides-the-trend/" rel="noopener noreferrer nofollow">not bursting </a>and the rising attraction of USD trades.</p>
<h2 class="wp-block-heading" id="h-bitcoin-faces-liquidity-pressure-amid-federal-reserve-policy"><strong>Bitcoin Faces Liquidity Pressure Amid Federal Reserve Policy</strong></h2>
<p>In its latest outlook, Coinbase Institutional <a href="https://x.com/CoinbaseInsto/status/1997035615075160549" target="_blank" rel="noopener noreferrer nofollow">noted that the Fed </a>has returned to the bond market. This suggests the final phase of quantitative tightening may be near.</p>
<p>The move often eases liquidity pressure. Analysts say this can support crypto market and assets like Bitcoin. In November, Bitcoin dropped more than three standard deviations below its 90-day trend, while U.S. equities stayed closer to their normal range.</p>
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  <img loading="lazy" width="1024" height="615" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-244-1024x615.png" alt="Crypto Market: Global M2 Money Supply Index | Source: X">
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   Crypto Market: Global M2 Money Supply Index | Source: X
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<p>The report also highlighted that long-term holders engaged in a rare period of coin distribution, and crypto prices traded below net asset value for the first time this year. These signs suggest a potential recovery in December.</p>
<p>Analyst Ted Pillows had warned the U.S. 10-year yield may hit its biggest weekly gain since June 2025. He said, “Despite the Fed cutting rates, the 10-year yield remains above 4%, which is not a good sign for risk-on assets.”</p>
<h2 class="wp-block-heading" id="h-crypto-market-usdt-deposits-soar-as-traders-brace-for-volatility"><strong>Crypto Market: USDT Deposits Soar as Traders Brace for Volatility</strong></h2>
<p>Binance Exchange recorded 946,000 USDT deposits in the past seven days. OKX followed with 841,000, while Bybit saw 225,000.</p>
<p>An Increase in stablecoin inflows usually means crypto market traders are getting ready to act. They could be preparing to buy dips or reposition quickly during market swings.</p>
<p>CryptoQuant’s crypto market data shows USDt flows across exchanges on the Tron network. With whale selling and high BTC inflows, experts say this surge points to reactive trading, not long-term accumulation.</p>
<p>In uncertain times, stablecoin inflows often lead to higher volatility and may cause short-term price swings.</p>
<div class="wp-block-image">
 <figure class="aligncenter size-large">
  <img loading="lazy" width="1024" height="570" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-243-1024x570.png" alt="Stablecoin Inflow Transaction | Source: CryptoQuant">
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   Stablecoin Inflow Transaction | Source: CryptoQuant
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 </figure>
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<h2 class="wp-block-heading" id="h-stablecoin-strength-fades-as-altcoins-hold-firm"><strong>Stablecoin Strength Fades as Altcoins Hold Firm</strong></h2>
<p>Data from Altcoin Vector shows a gap between stablecoin dominance and altcoin performance. Historically, peaks in USDT dominance often came just before money moved back into higher-risk assets like the crypto market.</p>
<p>In recent weeks, stablecoins have started to weaken. Altcoins, however, have stayed steady. Analysts say this may signal that traders are getting ready to return once Bitcoin stabilizes.</p>
<p>If this rotation continues, altcoins could rally quickly. Past patterns suggest that liquidity moving toward risk assets often triggers sharp rallies in the crypto prices.</p>
<p>The post <a href="https://www.thecoinrepublic.com/2025/12/08/top-4-reasons-why-crypto-market-will-pump-soon/" rel="noopener noreferrer nofollow">Top 4 Reasons Why Crypto Market Will Pump Soon</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Top 4 Reasons Why Crypto Market Will Pump Soon

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