Cryptocurrency exchange BloFin has warned of high downside risks to bitcoin prices due to current levels of market liquidity, predicting that liquidity levels in the cryptocurrency market will remain low for the foreseeable future as investors increasingly favour risk-free assets. BloFin said this was due to the Federal Reserve's decision to withdraw some of its liquidity from the market during the Treasury sale, thus pushing up yields. As a result, the value of safe haven assets such as gold, silver and the Dollar Index (DXY) has risen sharply due to increased investor demand. In addition, the influence of market makers on price stability is waning, with bitcoin prices facing significant resistance at the $63,000 level, while there is a lack of significant support below this price target. Analysts at BloFin said demand from central banks around the world was also rising, and gold prices remained high on the back of demand. In contrast, the price movement of risky assets is now more influenced by hedging activities. As a result, the liquidity level of risky assets such as bitcoin is low, which has a negative impact on their price movements. BloFin analysts concluded that while the Butterfly Index rose slightly, investors should remain cautious about potential systemic market risks.