[Analysis] "Cryptocurrency liquidity still limited…Possibility of prolonged bear market"

There are views that the bearish phase of major cryptocurrencies, such as Bitcoin (BTC), could be prolonged.

On the 14th, industry sources reported that crypto analytics firm Matrixport said in a recent report, "Bitcoin's price has fallen below a major long-term trend indicator for the first time since the start of the bull market," and "the correction phase or bear market that was forecast at the end of last October is likely to continue."

What Matrixport highlighted was the liquidity of the cryptocurrency market. Matrixport analyzed that "despite the U.S. Federal Reserve (Fed)'s 'balance sheet expansion,' the liquidity conditions of the cryptocurrency market remain limited due to weak retail trading," and that "political constraints may have a greater impact on market flows than investors' perceptions."

It also pointed to macroeconomic uncertainty. Matrixport said, "At the recently held Federal Open Market Committee (FOMC) meeting, interest rate cuts were implemented as the market expected, but the Fed's future guidance suggested a much more uncertain path," noting, "this situation has not yet been fully reflected in the market."

It added, "With mixed messages from Fed Chair Jerome Powell and early signs of weakening in the labor market appearing, the macroeconomic environment is shifting to a phase clearly different from earlier this year," adding, "the market is moving into a more complex environment where the importance of tactical positioning and risk management is increasing."