Bitcoin Could Fall Further on Liquidity Squeeze, but Long-Term Bull Case Remains Intact: Sygnum CIO

Bitcoin is highly sensitive to market liquidity. U.S. Treasury debt issuance since June 2025, which has shifted funds into the Federal Reserve's Treasury General Account (TGA), has amplified declines alongside volatile ETF flows and leveraged liquidations. Sygnum Bank Chief Investment Officer Fabian Dori said the latest pullback differs from the systemic crisis of 2022, citing improvements in regulatory clarity, institutional adoption and counterparty risk management.

Bitcoin was trading at about $67,035 when CoinDesk reported on March 3, 2026, down roughly 40% to 50% from its recent high in early October 2025. The October 10 liquidity event also weakened market depth. Dori warned that prices could fall further in the short term, but said improving economic data, stablecoin growth and institutional participation continue to support the long-term bullish outlook, even as U.S. inflation remains above the Federal Reserve's 2% target.