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Amid a significant bearish trend, Bitcoin traders are showing “aggressive caution,” according to Vetle Lunde, head of the research division at K33 Research.
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The expert believes that several factors are simultaneously impacting Bitcoin’s dynamics, including uncertainty surrounding military actions in the Middle East and discussions about potential quantum threats to Bitcoin. These risks are dampening investor activity and fostering a wait-and-see attitude, Lunde asserts.
He noted that during such periods, the decline in activity has been consistent: since 2019, the weekly trading volume of Bitcoin has reliably remained below annual averages. When liquidity decreases, the influence of individual large players intensifies: even relatively small trades can significantly affect prices. This increases the likelihood of sharp, albeit short-lived, price movements in Bitcoin that lack fundamental support, the expert is convinced.
The analyst stated that as liquidity begins to recover, the situation could change rapidly. The return of a broader range of participants could either strengthen current trends or, conversely, lead to a reversal due to the accumulated imbalance between supply and demand, according to the head of K33 Research’s research division.
Previously, an analyst from the on-chain platform CryptoQuant, using the pseudonym Darkfost, suggested that Bitcoin may remain under selling pressure in the coming months, with the breach of the $72,000 level postponed indefinitely.
