Crypto Markets Rebound, But Weekend Liquidity Risks Still Loom Large
Despite a spirited recovery in crypto sentiment this week, the market’s underlying vulnerabilities — especially around weekend liquidity — continue to pose real risks for Bitcoin and other digital assets.
Crypto Sentiment Lifts as Tariff Fears Ease
Investor mood across crypto markets improved sharply after U.S. President Donald Trump softened his stance on Chinese tariffs, suggesting duties might “come down substantially.” This renewed optimism gave the crypto sector a much-needed boost.
Bitcoin (BTC) staged an impressive 11% rally over the past week, signaling that risk appetite has returned — at least temporarily.
Yet, according to analysts from the Bitfinex exchange, traders should not grow complacent:
“Sentiment improvements reduce fragility, but they do not eliminate structural risks like thin weekend liquidity,” the analysts warned.
Historically, Bitcoin has remained vulnerable to sudden price swings over weekends, when trading volumes dip and market depth thins out — a pattern that could still derail short-term rallies.
Sunday Blues: Bitcoin’s Weekend Struggles Persist
This past weekend served as a sharp reminder. On Sunday, April 6, Bitcoin tumbled below $75,000, despite earlier showing resilience against broader market turmoil.
The initial shock came after Federal Reserve Chair Jerome Powell issued fresh warnings that Trump’s tariff moves could harm the economy and trigger inflation. As U.S. equities lost $3.5 trillion in market value, Bitcoin, often seen as a hedge, eventually succumbed to the pressure.
Thin liquidity exacerbated the fall, with Bitcoin acting as one of the few large liquid assets traders could offload to de-risk quickly.
Marcin Kazmierczak, co-founder and COO of RedStone blockchain oracle firm, emphasized:
“While improved sentiment creates a more stable foundation, cryptocurrency markets are still susceptible to rapid movements during periods of reduced trading volume,” he told Cointelegraph.
In short: good vibes alone aren’t enough.
Analysts Caution: Tariff Drama Isn’t Over Yet
Some experts believe the worst tariff-related fears have been fully priced into crypto markets. Aurelie Barthere, principal research analyst at Nansen, shared:
“It feels like we’ve maxed out on tariff-related fear,” she said, adding that markets were “just waiting for the slightest signal” to get back in the game.
However, questions about sustainability remain. Whether Bitcoin’s rally continues depends on breaking key resistance levels and navigating potential curveballs from ongoing U.S.-China negotiations.
Barthere explained:
“Markets now seem to believe there’s a ‘Trump put’ under equities, the U.S. dollar, and Treasurys.“
But she warned that future volatility is likely, especially as negotiations unfold.
Meanwhile, Nansen maintains a 70% probability that the crypto market has bottomed and could initiate a full recovery by June — though much hinges on political developments.
Raoul Pal, founder and CEO of Global Macro Investor, suggested that much of the tariff drama might be political posturing aimed at securing a broader trade deal:
“The real prize may be a major trade agreement between the U.S. and China,” he observed.
Key Takeaways for Crypto Traders
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Improved sentiment helps, but doesn’t erase structural vulnerabilities like weekend liquidity gaps.
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Bitcoin’s weekend drops are a real risk despite positive headlines.
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Markets may have priced in tariff fears, but new surprises could still spark sharp moves.
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Strategic patience is essential as negotiations — and market sentiment — evolve.
