FameEX Hot Topics | Trader Predicts a "Very High Chance" This Signals the Beginning of the Crypto Bull Market

The recent plunge in the cryptocurrency market on Friday has been attributed to what crypto trader Alex Becker calls "all-time impatience" among traders. Bitcoin (BTC) experienced a sharp decline, falling over 10% to $102,000. Despite the losses, Becker sees the correction as potentially signaling the start of a bull run, not the end of a rally. In a YouTube video published on Saturday, Becker argued that selling during such a market dip could be a mistake. He believes the market wipeout, triggered by geopolitical news—specifically former U.S. President Trump’s 100% tariff announcement on China—has led to an exaggerated reaction, which he sees as a necessary reset for the market.

Becker’s optimism is shared by Samson Mow, founder of Jan3, who posted on X (formerly Twitter) that “It’s time for Bitcoin’s next leg up.” Friday’s market drop saw Bitcoin’s price plummet by over $12,000, marking a significant downturn that eclipsed previous crypto crashes, including the COVID-19 crash and the FTX collapse. The $19.31 billion in liquidations during this correction was over ten times higher than the losses recorded during those past events. Despite the severity of the downturn, Becker believes the market’s reaction was excessive and that it could pave the way for future gains.

According to Becker, the market correction came after a prolonged period of frustration among traders. While Bitcoin had been rallying for over a year, other parts of the crypto market had been underperforming. This disparity caused traders to become impatient, and Becker argues that the market makers took advantage of this frustration by making rapid price adjustments. He further explained that every move in the market is now being overreacted to, as traders are unwilling to wait the necessary few months for the gains they expect, which has contributed to the volatility.

Which saw Bitcoin briefly reach a new high of $125,100 earlier in the week. However, Becker remains bullish, believing the current market dip is just part of the cycle and that Bitcoin is primed for future growth. Despite his optimism, some analysts, such as economist Timothy Peterson, caution that Bitcoin may undergo a "cooling off period" of three to four weeks before resuming its upward trajectory, albeit at a slower pace.

While Becker and analysts like Benjamin Cowen share a positive outlook, the broader crypto market sentiment remains cautious. The Crypto Fear & Greed Index, which gauges the overall market sentiment, posted a low “Extreme Fear” score of 24 on Sunday. This suggests that many in the market are still uncertain about the next steps for Bitcoin and the broader crypto industry, signaling that volatility is likely to persist in the near term.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.