Analysts are cautioning that the recent crypto market rebound led by Bitcoin and Ethereum might be brief, citing as reasons that the overall tone remains negative given the current macro headwinds and crises on the crypto market. Despite the recent rally seen across the board, Bitcoin and Ethereum remain down 35.30% and 41.87% this month at current prices.
As U.Today previously reported, Nobel-winning economist Paul Krugman says that the recent rebound might be a ”flash in the pan” or “probably” just a dead cat bounce. During bear markets, it is typical to see short-lived rallies referred to as “dead cat bounces” before prices continue their downward move.
Don’t get excited about #Bitcoin being back above $20K. 20 is the new 30. This is just another bull trap. Nothing drops in a straight line. In fact, this slow motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom.
— Peter Schiff (@PeterSchiff) June 19, 2022
“Don’t get excited about Bitcoin being back above $20K.” Bitcoin critic Peter Schiff again comes down hard on Bitcoin proponents. “20 is the new 30. This is just another bull trap. Nothing drops in a straight line. In fact, this slow-motion crash has been extremely orderly. No sign yet of any capitulation that typically forms a bear market bottom.”
The Crypto Fear and Greed Index, which measures market sentiment, currently reads “9/100,” which is “extreme fear.”
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Bitcoin and Ethereum price action
Bitcoin broke a 12-day losing streak on June 19, fighting its way back above $20,000 and leading the cryptocurrency market in a comeback after a record-breaking run of losses.
At the time of publication, the lead cryptocurrency is up 5.17% after trimming some of the prior day’s gains, trading at $20,747. Bitcoin recouped some of its losses after plunging to as low as $17,599. The second-largest cryptocurrency by market capitalization touched as low as $881 in the sell-off before partly recovering. At press time, Ethereum was changing hands at $1,152, up 9.255% in the last 24 hours. Alternative cryptocurrencies such as Avalanche, Solana, Polkadot, Polygon and Apecoin recorded gains of between 10% and 15%.
According to Paul Veradittakit, a partner at crypto-focused hedge fund Pantera Capital, digital assets may be nearing their price bottoms. “I think we started to hit levels near the bottom where institutional investors see a buying opportunity,” he said.