Bitfinex analyst: Although crypto market sentiment has improved, we still need to be wary of the downside risks caused by insufficient liquidity over the weekend

News: Cryptocurrency investor sentiment has significantly recovered from global tariff concerns, but analysts suggest that market structural weaknesses may still cause downward pressure during periods of low weekend liquidity. After the U.S. President Trump adopted a more moderate attitude, indicating that import tariffs on Chinese goods could be "substantially reduced", cryptocurrency investors' risk appetite seems to have improved this week. However, Bitfinex analysts stated that this sentiment improvement "does not mean Bitcoin will avoid volatility during the weekend. While improved sentiment can reduce market vulnerability, it cannot eliminate structural risks such as weak weekend liquidity. Historically, weekends are still prone to dramatic fluctuations, especially when unresolved contracts are high and market depth is low. Sudden macroeconomic news can still intensify volatility during low liquidity periods." (Cointelegraph)