The feelings of encryption are recovered, but the risk of weekends remains the liquidity of the weekend
The feelings of investors at Crypto have witnessed a great recovery from the fears of the global tariff, but analysts warn that the market structural weaknesses may still lead to negative momentum during periods of the weekend.
It seems that the appetite of risk is returning between encryption investors this week after US President Donald Trump adopted a more soft tone, Saying “The tariff for importing Chinese goods” may significantly decrease.
However, improved investor morale “does not guarantee that bitcoin will avoid volatility during the weekend”, informed analysts from the Cointelgraph:
“The improvement of feelings reduces fragility, but it does not eliminate structural risks such as delicate weekend liquidity.”
“Historically, weekends remain vulnerable to sharp movements – especially when open interest is high and the depth of the market is low,” he said, adding that the unexpected macroeconomic news continues to increase fluctuations during low liquidity periods.
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Bitcoin (BTC) organized an almost 11 % recovery over the past week, but its gathering was previously limited by Sunday.
Bitcoin fell to less than 75,000 dollars on Sunday, April 6, despite the initial separation of the US stock market of $ 3.5 trillion on April 4 after the US Federal Reserve Chairman Jerome Powell warned that Trump’s tariff may affect the economy and increase inflation.
Industry observers told Cointelegraph that the correction had exacerbated due to lack of liquidity at the end of the week and the fact that Bitcoin was the only large liquid asset available to remove the seizure.
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“While the improved feelings create a more stable basis, cryptocurrency markets are still vulnerable to fast movements during periods of low trading volume,” according to Marsen Kazimerzak, co -founder and executive director of Redstone Blockchain Oracle.
“The recovery of feelings provides some pillows, but traders must remain cautious because the weekend liquidity restrictions are still amplifying price movements regardless of the current market mood,” said Cointelegraph.
Investors may have a “maximum concern related to tariffs”
Current currency markets may be priced in the full term of tariff concerns, according to Crypto Intelligence Platform Nansen.
“It seems that we have reached the maximum fear of tariffs,” she told Cointelegraph.
“While many are not sure of the place where things are heading next month or so, it seems that the markets were only waiting for the slightest indication until we return to the game.”
“If the gathering is sustainable, it depends on whether we can penetrate the previous resistance levels, at least in isolation from others. It can have legs, as the markets seem now that there is” Trump “under the stocks, the US dollar and the US Treasury,” and Batriqi added a warning of more potential fluctuations in the upcoming negotiations.
Nanson previously expected a 70 % opportunity that the encryption markets will lead down and begin to recover by June, but highlighted that the timing will depend on the results of the tariff negotiations.
Customs tariff negotiations may be “localized” for the United States only to reach a trade agreement with China, which may be the “great prize” of the Trump administration, according to Raul Pal, founder and CEO of Global Macro Investor.
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