Bitcoin surged past $66,000 on Tuesday, reaching an intraday high of around $66,425, as US stocks rallied and the CoinDesk Market Index rose by 1.7% over the past 24 hours.
The cryptocurrency's price movement mirrored a broader 'risk-on' day in markets, with the Nasdaq 100 gaining 2%. However, this rally came alongside a warning sign: Bitcoin's 24-hour trading volume fell by 4.2% to $29.31 billion, despite the total crypto market value ticking up 1.5% to $2.26 trillion.
Lower trading volume often indicates thinner liquidity in the market, making prices more susceptible to rapid changes. In this case, a relatively small wave of buying can lift prices further than usual, and reversals may occur more quickly due to the reduced market depth.