{"id":128022,"date":"2025-04-26T14:17:02","date_gmt":"2025-04-26T14:17:02","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=128022"},"modified":"2025-04-26T14:17:02","modified_gmt":"2025-04-26T14:17:02","slug":"crypto-sentiment-recovers-but-weekend-liquidity-risks-remain","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=128022","title":{"rendered":"Crypto sentiment recovers, but weekend liquidity risks remain"},"content":{"rendered":"

Source: Cointelegraph.com NewsCrypto investor sentiment has seen a significant recovery from global tariff concerns, but analysts warn that the market\u2019s structural weaknesses may still result in downside momentum during periods of weekend illiquidity.
\nRisk appetite appeared to return among crypto investors this week after US President Donald Trump adopted a softer tone, saying that import tariffs on Chinese goods may \u201ccome down substantially.\u201d
\nHowever, the improved investor sentiment \u201cdoes not guarantee that Bitcoin will avoid volatility over the weekend,\u201d analysts from Bitfinex exchange told Cointelegraph:
\n\u201cSentiment improvements reduce fragility, but they do not eliminate structural risks like thin weekend liquidity.\u201d\u00a0
\n\u201cHistorically, weekends remain vulnerable to sharp moves \u2014 especially when open interest is high and market depth is low,\u201d the analysts said, adding that unexpected macroeconomic news can still increase volatility during low liquidity periods.
\nRelated: Trump fought the bond market, the bond market won: Saifedean Ammous
\nBitcoin (BTC) staged a near 11% recovery during the past week, but its rally has previously been limited by Sunday liquidity dynamics.
\nBTC\/USD, 1-year chart. Source: CointelegraphBitcoin fell below $75,000 on Sunday, April 6, despite initially decoupling from the US stock market\u2019s $3.5 trillion drop on April 4 after US Federal Reserve Chair Jerome Powell warned that Trump\u2019s tariffs may affect the economy and raise inflation.
\nThe correction was exacerbated by the lack of weekend liquidity and the fact that Bitcoin was the only large liquid asset available for de-risking, industry watchers told Cointelegraph.
\nRelated: US banks are \u2018free to begin supporting Bitcoin\u2019 \u2014 Michael Saylor
\n\u201cWhile improved sentiment creates a more stable foundation, cryptocurrency markets are still susceptible to rapid movements during periods of reduced trading volume,\u201d according to Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm.
\n\u201cThe sentiment recovery provides some cushioning, but traders should remain cautious as weekend liquidity constraints can still amplify price movements regardless of the current market mood,\u201d he told Cointelegraph.
\nCrypto investors may have \u201cmaxed out on tariff-related fears\u201d
\nCryptocurrency markets may have priced in the full extent of tariff-related concerns, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen.
\n\u201cIt feels like we\u2019ve maxed out on tariff-related fear,\u201d she told Cointelegraph, adding:
\n\u201cWhile many remain uncertain about where things are headed over the next month or so, it also seems like markets were just waiting for the slightest signal that we\u2019re back in the game.\u201d
\n\u201cWhether the rally is sustainable depends on whether we can break through previous resistance levels, at least in isolation. It could have legs, as markets now seem to believe there\u2019s a \u2018Trump put\u2019 under equities, the US dollar and US Treasurys,\u201d Barthere added, warning of more potential volatility amid the upcoming negotiations.
\nNansen previously predicted a 70% chance that crypto markets will bottom and start a recovery by June, but highlighted that the timing will depend on the outcome of tariff negotiations.
\nThe tariff negotiations may only be \u201cposturing\u201d for the US to reach a trade agreement with China, which may be the \u201cbig prize\u201d for Trump\u2019s administration, according to Raoul Pal, founder and CEO of Global Macro Investor.
\nMagazine: Bitcoin\u2019s odds of June highs, SOL\u2019s $485M outflows, and more: Hodler\u2019s Digest, March 2 \u2013 8Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsCrypto investor sentiment has seen a significant recovery from global tariff concerns, but analysts warn that the market\u2019s structural weaknesses may still result in downside momentum during periods… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128022"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128022"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/128022\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128022"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}