Analyst: Despite Improving Sentiment in the Crypto Market, Caution is Advised Due to the Risk of Weekend Liquidity Shortages
According to Cointelegraph, cryptocurrency investor sentiment has significantly recovered from global tariff concerns. However, analysts indicate that the market's structural weaknesses could still trigger downward pressure during periods of low weekend liquidity.
Following U.S. President Trump's more temperate stance, suggesting a "substantial reduction" in tariffs imposed on Chinese goods, crypto investor risk appetite appears to have rebounded this week. Nevertheless, analysts caution that this improvement in sentiment does not guarantee Bitcoin will avoid volatility over the weekend. While the improved sentiment might reduce market fragility, it cannot eliminate structural risks such as thin weekend liquidity. Historically, weekends remain prone to significant volatility, particularly when open interest is high and market depth is low. Sudden macroeconomic news could still exacerbate volatility during periods of lower liquidity.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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