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Crypto Market Rises Sharply, but Experts Warn it May Be a ‘Dead Cat Bounce’
The cryptocurrency market has witnessed a remarkable surge in recent days, with many top assets experiencing significant gains. Solana (SOL) is up by 6.18%, Dogecoin (DOGE) by 6.03%, Cardano (ADA) by 8.19%, TRON (TRX) by 3.32%, and Binance Coin (BNB) by 2.55%. This sudden rally has been attributed to President Donald Trump’s unexpected decision to pause tariff impositions for 90 days, which has offered global markets some breathing room and temporarily restored confidence in the crypto sector.
While many are rejoicing at this sudden upswing, experts are cautioning that this may be a ‘dead cat bounce’. Whalewire founder Jacob King believes that institutions are using the current optimism to exit with profits, while retail investors are jumping back in under the assumption that the worst is over. This dichotomy could potentially lead to another sharp fall.
Recent data does support these concerns. US-listed Bitcoin ETFs have experienced over $1 billion in outflows over the past two weeks, and Ethereum ETFs have seen notable withdrawals of more than $73 million. These indicators suggest that larger players may be offloading holdings ahead of a potential correction.
However, not all experts share this pessimistic view. Some analysts argue that the current rally has stronger foundations than previous ones, as it stems from concrete macroeconomic developments rather than speculative hype. They point to the continued growth in institutional adoption, progress in real-world asset tokenization, and renewed interest in Web3 technologies.
Despite the uncertainty, many within the crypto community remain optimistic about the underlying technology and decentralized vision that powers cryptocurrencies. While prices may fluctuate, the fundamental advancements continue to gain traction globally.
It is essential for investors to approach this rally with a healthy dose of skepticism and carefully consider their investment strategies moving forward.
Source: https://crypto-economy.com/crypto-market-rises-sharply-but-experts-warn-it-may-be-a-dead-cat-bounce/
