The feeling of investors in crypto has experienced a significant recovery in global tariff concerns, but analysts warn that the structural weaknesses of the market can still lead to dynamics during periods of illiquidity of the weekend.
Risk appetite seemed to return among cryptographic investors this week after US President Donald Trump has adopted a softer tone, saying that import prices on Chinese products could “lower considerably”.
However, improving the feeling of investors “does not guarantee that Bitcoin will avoid volatility this weekend,” Bitfinex Exchange analysts in Cointelegraph told Cointelegraph analysts:
“Improvements of feelings reduce fragility, but they do not eliminate structural risks like the fine liquidity of the weekend.”
“Historically, weekends remain vulnerable to net movements – in particular when the interest open is high and that the depth of the market is low,” said analysts, adding that new unexpected macroeconomics can always increase volatility during low periods of liquidity.
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Bitcoin (BTC) organized a recovery of almost 11% in last week, but its rally has already been limited by the Sunday liquidity dynamics.
Bitcoin fell below $ 75,000 on Sunday, April 6, despite the initial decoupling of the drop of 3.5 billions of dollars on the US stock market on April 4 after the president of the American federal reserve Jerome Powell warned that Trump’s prices could affect the economy and increase inflation.
The correction was exacerbated by the lack of liquidity of the weekend and the fact that Bitcoin was the only large liquid asset available for disintegration, industry observers said in Cointelegraph.
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“Although the improvement of feelings creates a more stable base, the markets of cryptocurrencies are always sensitive to rapid movements during periods of reduction in commercial volume”, according to Marcin Kazmierczak, co-founder and chief of the exploitation of Redstone Blockchain Oracle Firm.
“The recovery of feelings provides a certain cushioning, but traders should remain cautious because the liquidity constraints of the weekend can always amplify price movements, whatever the current mood of the market,” he told Cointtelegraph.
Cryptographic investors may have “maximized fears related to prices”
Cryptocurrencies markets can have a price as far as prices are concerned, according to Aurelie Barthere, main research analyst at Crypto Intelligence Platform Nansen.
“We have the impression that we have mastered the fear linked to prices,” she told Cointelegraph, adding:
“While many remain uncertain about the place where things are headed for next month, it also seems that the markets are only waiting for the slightest signal that we are back in the game.”
“The question of whether the rally is sustainable depends on permission to cross the previous resistance levels, at least in isolation. It could have legs, because the markets now seem to believe that there is a` Trump put ‘under the actions, the US dollar and the American treasury, “added Barthere, warning more potential volatility in the middle of the negotiations to come.
Nansen had previously predicted a 70% chance that the cryptographic markets below and begin a resumption by June, but stressed that the calendar will depend on the outcome of the tariff negotiations.
Price negotiations can only be “posture” for the United States to reach a trade agreement with China, which could be the “Grand Prix” of Trump’s administration, according to Raoul Pal, founder and CEO of Global Macro Investor.
https://www.youtube.com/watch?v=hb0z1ti8uys
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