Bitcoin’s December recovery is anticipated due to improving liquidity conditions and a 92% chance of a Federal Reserve rate cut. Market sentiment is still fearful, hindering institutional and retail capital entry. A potential “Santa rally” could follow the Fed’s rate cut, with Bitcoin’s Q1 2026 prospects linked to Fed Chair Powell’s remarks. Analysts predict a recovery despite November sell pressure from Powell’s hawkish comments. Growing speculation surrounds Kevin Hassett’s possible appointment as the next Fed Chair, potentially leading to a more dovish policy stance.

Read more at Cointelegraph: Bitcoin December Recovery ‘Macro Tailwinds,’ Fed Rate Cut: Coinbase