Recent price increases in cryptocurrencies such as Bitcoin and Ethereum have sparked a familiar debate: is there a chance for a rebound or are these just signs of more pain?
Bitcoin has been ravaged by high interest rates, a string of high-profile collapses, and a record high of $69,000 for November 2021.
Although Bitcoin has fallen nearly 67% since its peak, digital assets and other investments such as stocks have had a positive start. Bitcoin’s price has risen 38% to $22,858, which is its highest value since August last year. According to, Ethereum has seen its value rise by 38% to $1,645, while Bitcoin’s price rose 38% to $22,858, according to.
In anticipation of an economic report showing that inflation had cooled in December, cryptocurrency prices rose earlier in the month. This reading raised hopes that the Federal Reserve would lower interest rates than in the past year to contain soaring prices.
Be cautious, warn the cautious. Many crypto commentators think the recent price rise is too exaggerated to be true. They believe it’s a bull trap and predict that the rally will end in a sell-off.
Others who have been following the rally are skeptical as well. A Twitter poll by a popular Bitcoin site found that over 18,000 people believed the rally was a bull trap.
Recenty,’Il Capo Of Crypto‘, a prominent influencer, and self-described crypto analyst, supported the bearish view, stating that the rally ‘clearly appears manipulated’ and is the largest bull trap they’ve ever witnessed.
I have been looking at charts for a while, and avoiding the noise of Twitter. The upward movement, and the testing of htf resistances… it all looks manipulative. There is no real demand.
This is the largest bull trap I have ever seen. They won’t trap you.
– il Capo Of Crypto (@CryptoCapo_) January 21, 2023
Reddit users echoed this sentiment, with one user pushing backagainst comments supporting a market bottom in a news article.
It was hard to believe that only a week ago, everyone and their analyst were solemnly and confidently declaring that [Bitcoin] at 12k was inevitable.
Jim Cramer is another option. MSNBC’s host tweeted Wednesday that the bounce was’manipulation’, further proof that digital assets are a “sham market.”
The manipulation of crypto higher shows that this is a sham marketplace ….
Jim Cramer (@jimcramer January 18, 2023
Cramer’s mixed accuracy over the long-term has been ridiculed, leading to many memes and accounts like the Inverse Cramer, a fictional Exchange-Traded Fund, that advises the opposite of Cramer.
Cramer’s Wednesday assertion was rebutted by multiple accounts, including Dan Held, head growth marketing at Kraken crypto exchange, who responded, “Bottom is in!”
Other Twitter accounts that are influential were also bullish. PlanB was one example. A new bull market for digital assets began as Bitcoin’s recent boom. It was a chance for community members to criticize those who believe digital assets are going to suffer more losses.
Wall Street is also seeing the price rises as a reason to be concerned.
Analysts at JP Morgan published a research report Friday that couldn’t explain crypto’s recent surge with confidence. However, it acknowledged market conditions for more risky assets have become more favorable.
It stated that although we don’t know much about the January-to date rally in crypto, it was a sign of the conviction many still hold in crypto. “The crypto-bulls have seemed to be reenergized.
