Crypto markets staged a strong rebound, with total market capitalization climbing 3.7 percent and adding roughly 120 billion dollars to reach 2.43 trillion. Just days after investors feared a drop toward 60,000 dollars, Bitcoin pushed back toward the 70,000 level, reigniting optimism across the market.
Santiment noted that bullish narratives have quickly resurfaced, with traders shifting back into fear of missing out mode. Bitcoin briefly touched 70,000 before slipping to around 68,000, raising concerns that the move could turn into a classic bull trap.
Analyst Chiefy argued that Bitcoin may be entering the final bull trap of the current cycle, claiming price action resembles the 2022 pattern and forecasting a potential drop toward 44,000 within days. A bull trap occurs when price rallies during a broader downtrend, attracting buyers before resuming lower and forcing late entrants to exit at a loss.
CryptoQuant analyst PelinayPA offered a more measured view, describing the surge as a relief rally. She highlighted that the Fund Flow Ratio, which tracks BTC inflows to Binance relative to holdings on the exchange, remains low at 0.012. Fewer coins moving to exchanges typically reduce immediate selling pressure and can support short term upside. If the ratio stays subdued, she said, the market could even see a short squeeze that drives prices higher temporarily.
Others see structural changes behind the rebound. Analyst Bull Theory suggested that after legal action involving Jane Street, persistent selling pressure eased, allowing the market to add more than 200 billion dollars in 48 hours. For the first time in weeks, there were two consecutive days without aggressive downside pressure.
MN Fund founder Michaël van de Poppe downplayed the specific catalysts, whether linked to options positioning, institutional activity, or equity correlations. In his view, Bitcoin’s current valuation remains deeply discounted, implying that the broader upside potential could outweigh the risk of a short lived trap.
