Citi analysts report Bitcoin’s price weakness is sending a warning to both crypto and traditional markets, while potential liquidity improvement looms, affecting various digital assets globally as of November 2025.
Market sentiment remains cautious with thin liquidity and hacking incidents fueling volatility, although historical trends and potential macroeconomic shifts offer hope for recovery before year’s end.
Bitcoin’s recent price weakness has raised concerns of a broader risk-off sentiment in both crypto and traditional markets. Analysts suggest liquidity improvements may change market conditions.
Citi’s market strategy team discusses liquidity recovery possibilities despite the market’s current uncertainty.
Liquidity Potential Shift Amid Bitcoin Price Decline
Bitcoin’s recent price weakness has raised concerns of a broader risk-off sentiment in both crypto and traditional markets. Citi analysts suggest that market liquidity could soon improve, potentially creating a shift in conditions.
Citi’s market strategy team highlights the potential for liquidity to recover, despite no official statements from key executives. Crypto commentators such as Peter Brandt indicate potential price declines, while ZeroCap’s research proposes an uptrend into year-end.
Emir Ebrahim, Head of Research, ZeroCap: “With macro uncertainty easing and risk sentiment gradually improving, positioning remains favorable for a continuation of the longer-term uptrend into year-end.”
Balancer Hacks Cause $128 Million DeFi Flight
Bitcoin and Ethereum are under pressure, with altcoins experiencing significant drawdowns. The recent hack on Balancer has compounded market sentiment issues, triggering a capital flight from DeFi platforms.
The $128 million Balancer hack has exacerbated market chills, leading to a decrease in TVL. However, Citi emphasizes possible improvements in broader liquidity trends, influenced by macroeconomic and legislative factors.
November’s Promising Returns for Bitcoin
November traditionally delivers strong returns for Bitcoin, potentially mitigating current weaknesses. Past liquidity issues and DeFi hacks, such as Curve and Poly Network, resulted in short-term volatility but medium-term recoveries.
Expert analysis from Kanalcoin suggests historical trends and current conditions position Bitcoin for a possible continuation of its long-term uptrend. Market sentiment remains mixed, reflecting both caution and optimism.
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