Bitcoin trading activity cools as market liquidity contracts and investor caution grows
Portfolio Pulse from
The latest Bitfinex Alpha report reveals a significant cooling in Bitcoin trading activity, characterized by declining liquidity, reduced exchange inflows, and diminished speculative interest. Market participants are showing increased caution, with Bitcoin's price movements heavily influenced by macroeconomic developments and uncertainty surrounding Federal Reserve monetary policy.
March 24, 2025 | 11:00 pm
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NEUTRAL IMPACT
Bitcoin's trading activity has significantly decreased, with Hot Supply dropping over 50% and exchange inflows declining by 54%, indicating reduced market participation and speculative interest.
The article highlights multiple factors suggesting Bitcoin is in a period of low liquidity and reduced trading activity. The decline in Hot Supply, exchange inflows, and speculative interest point to a neutral to potentially bearish short-term outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100