Sygnum CIO: Bitcoin may decline further in the short term due to liquidity tightening, but the long-term bull market outlook remains
According to CoinDesk, Sygnum's Chief Investment Officer Fabian Dori stated that the recent pullback in Bitcoin is primarily driven by liquidity tightening rather than a structural collapse in fundamentals. He believes that Bitcoin's volatility will remain high in the short term, and prices may decline further, as market sentiment has fallen to extreme fear levels, exposing the market to more volatility and downside risks.
Dori pointed out that since June of last year, the U.S. Treasury's issuance of notes and bonds has led to a significant increase in the Treasury's total account balance, effectively withdrawing liquidity from the market. As one of the most sensitive asset classes, the cryptocurrency market has been significantly affected.
Despite the bleak short-term outlook, Dori remains optimistic about the long-term prospects, believing that factors such as improving business cycle data, the growth of stablecoins, and increased institutional participation support a constructive long-term outlook, and the current market environment is completely different from the systemic risk environment of 2022.
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