Bitcoin and the crypto market suffer from tightening conditions in the nascent sector and could see more losses coming into 2023. The poor performance in the U.S. stock market might contribute to this possibility.
Market participants were expecting a Santa Rally ahead of the holidays. There is less trading volume in the market which often leads to spikes in volatility. This year, volatility might side with the bears.
A Decline In Liquidity Across Global Markets Impacts Bitcoin
Director for Macro for investment firm Fidelity, Jurrien Timmer, has been warning about the current market conditions. In early November, the market enjoyed a short-lived rally following expectations of better conditions.