Bitcoin Decline Signals Structural Weakness As Liquidity, Macro Conditions Worsen – Details
A recent analysis by XWIN Research Japan indicates Bitcoin is exhibiting structural weakness due to deteriorating liquidity and adverse macroeconomic conditions. Trading volume has significantly declined for months, resulting in low market liquidity that amplifies the impact of news and short-term flows. This is compounded by a drop in active addresses, signaling weak demand and hindering recovery. While some on-chain metrics have slightly improved, they are insufficient to confirm a trend reversal.
Macroeconomic pressures, particularly rising oil prices from the US-Israel-Iran conflict, have increased inflation expectations. This has led to anticipations of interest rate hikes and tighter financial conditions, causing simultaneous sell-offs in bonds, equities, gold, and cryptocurrencies—deviating from traditional risk-off behavior. Unless liquidity and on-chain activity show definite recovery, Bitcoin's price is expected to decline further in the near term. At the time of writing, Bitcoin was trading around $65,981, down 4.01% over the past day.
bitcoinist03/28 15:01