Bitcoin Price May Drop Due to Liquidity Crunch But Long-Term Outlook Bullish, Says Sygnum CIO

Bitcoin (BTC) could face further price declines in the near term due to tightening liquidity conditions, according to the Chief Investment Officer (CIO) of Swiss digital asset bank Sygnum. However, the long-term bullish thesis for the leading cryptocurrency remains firmly intact. The CIO pointed to macroeconomic factors, such as quantitative tightening and higher interest rates, as key contributors to a potential liquidity squeeze that may pressure risk assets, including crypto. Despite this short-term headwind, the fundamental case for Bitcoin—including its scarcity, adoption as a digital store of value, and institutional investment—continues to support a positive long-term trajectory. Market participants are advised to monitor liquidity indicators while maintaining a focus on the core investment narrative.