TechFlow News, March 3 — According to a CoinDesk report, Fabian Dori, Chief Investment Officer at Swiss cryptocurrency bank Sygnum, stated that Bitcoin’s recent pullback is primarily driven by liquidity tightening—not by a structural collapse in fundamentals. He believes Bitcoin’s volatility will remain elevated in the near term, with prices potentially falling further; market sentiment has plunged to “extreme fear,” exposing the market to heightened volatility and downside risk.
Dori noted that since June last year, the U.S. Department of the Treasury’s increased issuance of bills and bonds has caused a sharp rise in the Treasury General Account (TGA) balance—effectively draining liquidity from the market. As one of the most sensitive asset classes, the cryptocurrency market has been significantly impacted.
Although the near-term outlook remains bleak, Dori maintains an optimistic long-term view, citing improving business-cycle data, stablecoin growth, and rising institutional participation as factors supporting a constructive long-term outlook. He emphasized that the current market environment is fundamentally different from the systemic-risk conditions seen in 2022.
