Bitfinex Analyst: Despite the warming sentiment in the crypto market, one should remain cautious of the downside risk due to weekend liquidity shortages

BlockBeats News, April 26th, according to Cointelegraph, cryptocurrency investor sentiment has significantly warmed from global tariff concerns, but analysts say that the market's structural weaknesses may still trigger downside pressure during the weekend's low liquidity.

With U.S. President Trump taking a more moderate stance and indicating that import tariffs on Chinese goods may be "substantially reduced," the risk appetite of cryptocurrency investors this week seems to have improved. However, a Bitfinex analyst stated that this improved sentiment "does not mean that Bitcoin will be able to avoid volatility over the weekend. While improved sentiment can reduce market fragility, it cannot eliminate structural risks such as low weekend liquidity. Historically, weekends are still prone to sharp fluctuations, especially in the presence of high open interest and low market depth. Sudden macroeconomic news can still exacerbate volatility during periods of low liquidity."