The recent surge in prices of cryptocurrencies such as Bitcoin and Ethereum has sparked a well-publicized debate as to whether a market rebound is imminent or whether the recent trend is just a harbinger of more pain.
Since Bitcoin hit a record high of around $69,000 in November 2021, digital assets have been hit hard by rising interest rates and a series of high-profile collapses. For example, companies such as Three Arrows Capital (3AC) and FTX.
Bitcoin is down nearly 67% from its peak, but digital assets (and other investments like stocks) are off to a good start to the year. Bitcoin’s price has surged 38% so far this month to $22,858, its highest since August last year. Meanwhile, Ethereum said the value of ETH rose by about 38% to reach $1,645. coin gecko.
Cryptocurrency prices started rising earlier this month in anticipation of economic reports that showed inflation had fallen in December. The numbers also raised hopes that the US Federal Reserve (Fed) would be less aggressive than last year in an effort to contain soaring prices.
But say you are tired and cautious. Many crypto commentators believe the recent price rally is too good to be true, calling the rally a bullish trap.
Others following Larry are also skeptical. A Twitter poll conducted by a popular bitcoin page said: consensus Among over 18,000 attendees, the rally turned out to be a bull trap on January 15th.
Recently, “Il Capo of CryptoProminent influencer and self-proclaimed crypto analyst “.
The sentiment among cautious crypto enthusiasts was echoed on Reddit. pushed back I disagree with observations made in news articles that support market bottoms.
“It’s hard to believe that just a week or so ago, everyone and their analysts solemnly and confidently declared: [Bitcoin at] 12k was inevitable,” said the user.
Of course, there is Jim Cramer. MSNBC host slipping He tweeted on Wednesday that the recent bounce was “manipulation,” further proof that digital assets are a “fake market.”
The accuracy of Kramer’s long-running commentary has been mixed, and has been the subject of ridicule, provoking numerous memes, and “Inverse Kramer ETFa fictitious exchange-traded fund that recommends the opposite of Cramer’s advice.
In response to Cramer’s allegations on Wednesday, with multiple accounts seeing the host’s pessimism as a positive sign, Dan Held, head of growth marketing at crypto exchange Kraken, responded, “We’ve hit the bottom!” rice field.
Other influential accounts on Twitter were seriously bullish, such as “PlanB.” Declared With Bitcoin’s recent momentum taking hold, a new bull market for digital assets has begun. Several Community members used it as an opportunity to denounce those who believed digital assets would face more losses.
Rising prices are also giving Wall Street a headache for some.
A research report released by JP Morgan analysts on Friday failed to explain the surge in cryptocurrency prices with confidence, but citing the release of a recent inflation report, the market for riskier assets has remained volatile. I acknowledged that the situation was becoming more favorable.
“We don’t have a good answer to the rise of cryptocurrencies from January to now, but we think it epitomizes the underlying beliefs that many still hold about cryptocurrencies.” and the whale seems to have recovered.”
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