Friday’s plunge in the crypto market may actually indicate the early stages of a bull market, a crypto trader said.
“I think this is very likely the beginning of a bull market,” crypto trader Alex Becker said in a video published on YouTube on Saturday.
“I think selling right now might be the stupidest thing you ever do,” Becker said. Samson Mo, founder of Jan3, expressed a similar opinion in an X post on the same day, saying, “It’s time for Bitcoin to take the next step.”
Becker’s comments came after Bitcoin (BTC) plummeted more than 10% to $102,000 following President Trump’s announcement of 100% tariffs on China, erasing previous weakness in the cryptocurrency market on Friday. The $19.31 billion liquidation amount was more than 10 times the losses seen during the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).
The collapse of the virtual currency market will “just reset everything”
The crash shocked the global crypto community, but Becker called it a “massive overreaction” and said the massive wipeout “just reset everything.”
Becker argued that traders were becoming frustrated after Bitcoin rose for a year while other crypto markets lagged.
“I think that’s about to change,” he said. “This is driving people crazy, and you’ve seen market makers just moving the levers up and down,” Becker said, adding:
“Everything they do to the market they overreact by a factor of three or four, because people can’t wait months to get the profits they need.”
Becker said the sharp correction was partly caused by investors’ “unprecedented impatience” over the past few weeks.
Analysts say Bitcoin price will rise in the short term
Bitcoin hit a new high of $125,100 on Monday, but it remains well short of the $250,000 year-end target predicted by BitMEX co-founder Arthur Hayes, Unchained market research director Joe Barnett and others earlier this year.
Related article: Market crash has ‘no long-term fundamental impact’ — Analyst
Cryptocurrency analyst Benjamin Cowen shares Becker’s optimism. “I think it’s still going up in the short term,” Cowen said of Bitcoin, noting that Bitcoin’s dominance has regained 60% on Friday.
Economist Timothy Peterson was more cautious, telling Cointelegraph on Sunday that Bitcoin will likely enter a three- to four-week “cooling-off” period before restarting its rally. “But probably at a slower pace than before,” he said.
The industry as a whole is more skeptical, with the Crypto Fear & Greed Index, which measures overall crypto market sentiment, posting an “Extreme Fear” score of 24 in Sunday’s update.
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