FameEX Hot Topics | Trader Says There's a "Very High Chance" This Marks the Start of the Crypto Bull Market

The dramatic plunge in the cryptocurrency market on Friday has been attributed to a combination of factors, including growing frustration among traders. Crypto trader Alex Becker believes that this downturn is a result of an “all-time impatience” within the market, as traders have become increasingly frustrated with slow price movements. Despite the significant losses, Becker suggests that this market correction could actually signal the beginning of a new bull market. He argued that selling at this point could be a major mistake, as he believes the market is poised for a rebound.

Becker’s optimism came shortly after the crypto market experienced its most severe downturn, eclipsing previous declines in magnitude. Bitcoin saw a significant drop, falling over 10% to $102,000 following President Trump’s announcement of a 100% tariff on China. The market wipeout resulted in $19.31 billion worth of liquidations, far surpassing the losses witnessed during both the COVID-19 crash ($1.2 billion) and the FTX collapse ($1.6 billion). The sharp drop sent shockwaves through the crypto community, but Becker referred to it as a “massive overreaction,” claiming it reset the market and created potential for future gains.

Becker further explained that the crypto market has seen persistent frustration from traders, particularly after Bitcoin rallied for an entire year while the rest of the market lagged behind. He suggested that this situation led to a heightened sense of impatience among traders, resulting in the market’s overreaction. Becker pointed out that market makers had been adjusting the market frequently, causing volatility as traders reacted impulsively. He attributed much of this reaction to the inability of many traders to wait for longer-term gains, adding that impatience has been a key driving factor in the market’s recent volatility.

Despite the setbacks, Bitcoin managed to reach a new high of $125,100 earlier in the week. Crypto analyst Benjamin Cowen shares Becker’s optimism, maintaining that Bitcoin could continue its upward climb in the short term, pointing to the increase in Bitcoin Dominance, which reclaimed 60% on Friday. Cowen’s view aligns with Becker’s outlook, suggesting that Bitcoin’s dominance could signal a sustained rally.

However, not all experts share the same level of optimism. Economist Timothy Peterson cautioned that Bitcoin may face a “cooling off period” of three to four weeks before resuming its rally, although at a slower pace. Meanwhile, the broader crypto market sentiment remains cautious, as reflected in The Crypto Fear & Greed Index, which posted an “Extreme Fear” score of 24 in its Sunday update. This suggests that while some traders are optimistic, the overall market remains wary of the volatility and uncertainty that has defined the crypto space in recent months.

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