Sentiments of cryptographic investors have noted a significant recovery of global fears related to the tariff, but analysts warn that the structural weaknesses of the market can still cause rush during the period during the periods of weekend dismantle.
It seemed that the appetite at risk returns among cryptographic investors this week after US President Donald Trump accepted the pliable tone, saying that import tariffs for Chinese goods can “fall significantly”.
However, the improved mood of investors “does not guarantee that Bitcoin will avoid volatility over the weekend,” said analysts from Bitfinex Exchange CointeLgraph:
“Mood improvements reduce fragility, but they do not eliminate structural risk such as thin weekend fluidity.”
“Historically, weekends remain susceptible to sharp movements – especially when the open interest is high and the market depth is low,” said analysts, adding that unexpected macroeconomic messages may continue to boost variability in low liquidity periods.
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Bitcoin (BTC) has issued almost 11% recovery over the past week, but his rally was previously constrained by Sunday liquidity dynamics.
Bitcoin fell below USD 75,000 on Sunday, April 6, despite the initial separation from the estate of the US stock market on $ 3.5 trillion on April 4 after the chairman of the US Federal Reserve Jerome Powell warned that Trump’s tariffs could affect the economy and boost inflation.
The correction was tightened by the lack of weekend liquidity and the fact that Bitcoin was the only vast liquid asset available to nervousness, the industry observers said Cointelegraph.
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“While improved sentiments create a more stable basis, cryptocurrency markets are still susceptible to rapid movements during periods of reduced trade volume,” according to Marcin Kazmierczak, co -founder and operating director Redstone Blockchain Oracle Business.
“Recovery of moods ensures some cushioning, but salesmen should be careful, because weekend liquidity restrictions can continue to strengthen price movements regardless of the current market mood,” said Cointelegraph.
Cryptography investors could “express the fears associated with the tariff maximum”
According to Aurelie Barthere, the main research analyst of Nansen, cryptocurrency markets could fully value the fears of the tariff.
“It seems that we have lost the fear of a tariff as much as possible,” said CointeLgraph, adding:
“While many are not sure where they are going in the following month, it seems that the markets were waiting only for the smallest signal that we returned to the game.”
“Whether the rally is balanced depends on whether we can break the previous levels of resistance, at least in isolation. It may have legs, because the markets now seem to believe that” Trump “is under capital, the American dollar and the American treasures,” added Barthere, a warning about a greater potential variability in connection with the upcoming negotiations.
Nansen previously predicted a 70% chance that cryptographic markets will start and start recovering until June, but emphasized that time would depend on the result of tariff negotiations.
According to Raoul Pal, the founder and general director of Global Macro Investor, tariff negotiations can only be a “attitude”, so that the US reaches a trade agreement with China, which can be a “great reward” for Trump’s administration.
https://www.youtube.com/watch?v=hb0z1ti8uys
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