Friday’s crypto market plunge may actually mark the early stages of a bull run, a crypto trader said.
“I think there’s a very high chance this is the start of the bull market,” crypto trader Alex Becker said in a video published to YouTube on Saturday.
“I think selling right now could be the stupidest thing you could ever do,” Becker said. Jan3 founder Samson Mow echoed a similar sentiment in an X post on the same day, saying, “It’s time for Bitcoin’s next leg up.”
Becker’s comments come after the crypto market wipeout on Friday eclipsed every previous downturn, as Bitcoin (BTC) plunged over 10% to $102,000 following Trump’s 100% tariff on China announcement. The $19.31 billion in liquidations was more than ten times the losses seen during the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion).
The crypto market wipeout “just reset everything”
The crash sent shockwaves through the global crypto community, but Becker called it a “massive overreaction,” saying that the significant wipeout “just reset everything.”
Becker argued that traders had grown frustrated after Bitcoin rallied for a year while the rest of the crypto market lagged behind.
“I think that’s about to change,” he said. “This has driven people to insanity, and you’ve seen market makers just pulling the levers up and down,” Becker said, adding:
“Everything they do to the market gets overreacted three to four times, because people won’t just f##king wait a couple months to get the gains they need to get.”
According to Becker, the sharp correction was partly driven by “all-time impatience” among investors over the past few weeks.
Bitcoin’s price to climb in the short-term, says analyst
Bitcoin reached a new high of $125,100 on Monday but still falls short of the $250,000 year-end targets predicted earlier in the year by names like BitMEX co-founder Arthur Hayes and Unchained’s market research director Joe Burnett.
Related: Market crash ‘does not have long-term fundamental implications’ — Analyst
Crypto analyst Benjamin Cowen shares the same optimism as Becker. “I still think in the short-term it continues to climb,” Cowen said of Bitcoin, pointing to Bitcoin Dominance reclaiming 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 the asset resumes its rally. “But perhaps at a slower pace than before,” he said.
The wider industry is more skeptical, with The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posting an “Extreme Fear” score of 24 in its Sunday update.
Magazine: EU’s privacy-killing Chat Control bill delayed — but fight isn’t over