Binance Research: Slowdown in Global Monetary Tightening Policy May Benefit Bitcoin

November 10: Binance Research said on Tuesday that as the pace of global monetary tightening slows, Bitcoin is still expected to find support even if the market expects a Federal Reserve rate hike in December.

Binance Research noted in a report that among the 10 central banks it tracks, 8 raised rates in the past six months, including the Riksbank's announced hike on November 4. However, the momentum of global monetary tightening has begun to slow since peaking in July this year. "Whether this slowing trend can continue into early 2027 will be key to judging whether the macroeconomic environment is reducing its adverse impact on the crypto market."

Binance Research also reviewed previous market cycles. In November 2022, Bitcoin bottomed, and its six-month return turned positive in February 2023, while at that time none of the central banks tracked by the index had begun cutting rates. Similarly, in 2024, despite ongoing global monetary tightening measures, Bitcoin's six-month return in March of that year still exceeded 160%, the highest level of that cycle. The report noted: "In both cases, Bitcoin followed the direction of change in global monetary policy, not the absolute level of policy rates."