After taking a particularly hard momentary hitting, Bitcoin has shown some heavy recovery with an almost 11% recovery in the last week. On April 4, the US stock market lost its value in a single day down $3.5 trillion. This revenue drop led to a crash in value, driving prices under $75,000. Despite this good news momentum, analysts are still warning that Bitcoin’s rally is susceptible due to weekend low liquidity.
Market watchers are still closely interpreting the return of Bitcoin’s recovery rally. They’re eager to see whether it can hit new record highs again come June. Perhaps the most important question on every investor’s mind is how sustainable this rally really is.
The recent market correction in Bitcoin was made particularly worse by the deeply reduced trading that occurs on weekends. This 24/7 availability can become a major disadvantage in periods of market turbulence.
"While improved sentiment creates a more stable foundation, cryptocurrency markets are still susceptible to rapid movements during periods of reduced trading volume." - Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm
The ongoing uncertainty in the cryptocurrency market’s reaction to possible economic policies is further weighing on Bitcoin. US Federal Reserve Chair Jerome Powell's warning about the potential impact of Trump's tariffs on the economy and inflation has influenced Bitcoin's performance, as it is often regarded as a large liquid asset for de-risking.
"The 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." - Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm
Nansen recently forecasted a 70% probability that crypto markets – Bitcoin included – would be at their bottom and on their way to recovery by June.
"It feels like we’ve maxed out on tariff-related fear." - Aurelie Barthere, principal research analyst at Nansen
Bitcoin’s recovery couldn’t come at a better time, and the eventual success or failure of U.S. And the market has been left to guess as to what is the full impact of these new tariffs.
"While 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’re back in the game." - Aurelie Barthere, principal research analyst at Nansen
Analysts point out glaring drawbacks in Bitcoin’s market structure. These vulnerabilities can lead to downside pressure, particularly over weekends when liquidity is even thinner. Further macroeconomic surprises might drive even greater volatility in Bitcoin around these low-liquidity windows as well.
"Sentiment improvements reduce fragility, but they do not eliminate structural risks like thin weekend liquidity." - Bitfinex exchange analysts
"Historically, weekends remain vulnerable to sharp moves — especially when open interest is high and market depth is low." - Bitfinex exchange analysts
