Crypto Market Sees Mixed Reactions to Recent Rally: “Bull Trap” or “Bottom is In”?

Recent rally in digital assets has been a topic of discussion in the crypto community. bitcoin prices have dropped 67% from its peak and ethereum and other digital assets have had a positive start to the year, with prices rising 38% this month. a twitter poll conducted by a popular bitcoin page indicated a consensus that the rally was a bull trap on jan. 15. “il capo of crypto,” a prominent influencer and self-proclaimed crypto analyst, agreed with the bearish take, claiming that the rally “clearly looks manipulated” and is the “biggest bull trap” they’ve ever seen. jim cramer, the host of msnbc’s mad money, recently tweeted that the recent bounce in the digital assets market is “manipulation” and further evidence that it is a “sham market”. dan held, head of growth marketing at crypto exchange kraken, replied to cramer’s pessimism with “bottom is in!”

Rally began in november of 2021 when bitcoin reached an all-time high of around $69,000. the sentiment of the rally being a bull trap was echoed on reddit, and investors remain cautious, uncertain whether the current upswing is here to stay or a prelude to further losses. jim cramer’s commentary has prompted ridicule over the long haul due to its mixed accuracy. there is an exchange-traded fund that recommends the opposite of cramer’s advice. some members of the crypto community have criticized those who still think digital assets will suffer further losses.

Rally has been attributed to inflation cooling in december, prompting optimism that the federal reserve may raise interest rates less aggressively than in the past year. planb, a prominent analyst, declared that a new bull market in digital assets had commenced following the recent pump in bitcoin prices. the twitter poll and influencer’s comments have caused some to question the legitimacy of the rally, with some dubbing it a ‘bull trap’, warning that the breakout may soon come crashing down. jim cramer’s commentary has only added to the confusion, as he has claimed that the recent bounce in the digital assets market is “manipulation” and further evidence that it is a “sham market”.

By Evey Lovelace

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