Binance Research: Global monetary tightening policy slowdown could be favorable for Bitcoin

Binance Research said on Tuesday that with the pace of global monetary tightening slowing, Bitcoin is expected to find support even as markets anticipate a U.S. Federal Reserve interest rate hike in December. In a report, the research arm noted that among the 10 central banks it tracks, 8 have raised interest rates over the past six months, including a hike announced by Sweden’s Riksbank on November 4. However, the momentum of global monetary tightening has started to ease since peaking in July this year. “Whether this slowdown trend can continue into early 2027 will be key to judging whether the macro environment is reducing its adverse impact on the crypto market,” the report said. Binance Research also reviewed previous market cycles: Bitcoin hit a bottom in November 2022, and its six-month return turned positive in February 2023, at a time when none of the central banks tracked by the index had yet begun cutting rates. Similarly, in 2024, despite global monetary tightening measures still in place, Bitcoin’s six-month return in March that year exceeded 160%, marking the highest level of that cycle. The report emphasized: “In both cases, Bitcoin followed the direction of changes in global monetary policy, rather than the absolute level of policy interest rates.”