Crypto sentiment recovers, but weekend liquidity risks remain
Crypto investor sentiment has rebounded significantly amidst easing global tariff concerns related to US-China trade. Despite this uptick, analysts caution about the structural weaknesses in the crypto market, particularly the historically low liquidity prevalent during weekends, which can lead to increased volatility. This recovery in sentiment does not assure that Bitcoin will experience a stable weekend, as the potential for sharp market movements remains high due to thin trading volumes. The analysts from Bitfinex highlighted that uplifts in sentiment might soften market fragility but do not negate liquidity issues. Moreover, some experts suggest the markets may have fully absorbed tariff-related fears, indicating that the sustainability of the current rally hinges on breaking through prior resistance levels. Upcoming negotiations regarding tariffs are likely to add further volatility, as many traders remain uncertain about future market directions.
Source 🔗