- Crypto market sentiment improves following Trump’s softer stance on Chinese tariffs, with Bitcoin staging an 11% recovery in the past week.
- Analysts warn that weekend trading remains vulnerable to sharp price movements due to thin liquidity, regardless of improved sentiment.
- Market experts suggest that tariff-related fears may have been fully priced in, though upcoming negotiations could introduce additional volatility.
Cryptocurrency investor sentiment has rebounded significantly as global tariff concerns ease, with Bitcoin recovering nearly 11% over the past week. This market improvement follows US President Donald Trump‘s more moderate stance on Chinese import tariffs, where he indicated that levies on Chinese goods might “come down substantially.”
Despite this positive shift, analysts from Bitfinex exchange cautioned that improved sentiment doesn’t eliminate all risks, particularly during weekend trading sessions. “Sentiment improvements reduce fragility, but they do not eliminate structural risks like thin weekend liquidity,” Bitfinex analysts told Cointelegraph, noting that weekends historically remain susceptible to sharp price movements, especially when market depth is low.
This vulnerability was demonstrated earlier this month when Bitcoin fell below $75,000 on Sunday, April 6, despite initially withstanding the US stock market’s $3.5 trillion drop on April 4. That market decline followed US Federal Reserve Chair Jerome Powell’s warning that Trump’s tariffs could impact the economy and increase inflation.
Marcin Kazmierczak, co-founder and chief operating officer of RedStone blockchain oracle firm, reinforced this perspective, telling Cointelegraph: “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.”
Market May Have Fully Priced In Tariff Concerns
According to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen, cryptocurrency markets may have already incorporated the full extent of tariff-related worries. “It feels like we’ve maxed out on tariff-related fear,” she explained to Cointelegraph.
Barthere added that markets seemed to be waiting for even the slightest signal to resume positive momentum. “Whether the rally is sustainable depends on whether we can break through previous resistance levels, at least in isolation,” she noted, while cautioning that more volatility could emerge during upcoming negotiations.
Negotiations May Be Strategic Posturing
Nansen previously forecasted a 70% probability that crypto markets would bottom and begin recovering by June, though the timeline depends significantly on tariff negotiation outcomes.
Raoul Pal, founder and CEO of Global Macro Investor, suggested that the current tariff discussions might only be “posturing” by the United States to secure a trade agreement with China, which could be the “big prize” for Trump’s administration.
As markets continue to navigate these developments, analysts maintain that weekend trading periods will require particular attention due to their inherent liquidity challenges, regardless of the improving overall sentiment in the cryptocurrency space.
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