The cryptocurrency market surged by over $120 billion in a single day, pushing total capitalization to $2.43 trillion as Bitcoin approached $70,000. On-chain data firm Santiment reported that retail sentiment flipped to “FOMO mode,” but analysts warn the move could be a bull trap. Some point to a potential relief rally, while others link the uptick to the cessation of alleged market manipulation following a lawsuit against trading firm Jane Street.
The cryptocurrency market experienced a rare green day with a 3.7% gain, adding approximately $120 billion to reach a total capitalization of $2.43 trillion. On-chain analytics firm Santiment noted the crowd had shifted into what it called “FOMO mode” just days after anticipating a price retest.
Bitcoin briefly touched $70,000 before retreating to around $68,000, leading some analysts to suggest it may have been a bull trap. Analyst Chiefy stated that “Bitcoin has just entered the final bull trap of this cycle,” predicting a sharp decline.
CryptoQuant analyst PelinayPA characterized the rise as a potential relief rally triggered by weak sell-side pressure. She explained that a low Fund Flow Ratio for Bitcoin on exchanges weakens immediate selling pressure and could set the stage for a short squeeze.
Some observers linked the market’s rapid two-day gain of over $200 billion to legal action against trading firm Jane Street. Analyst Bull Theory noted that for the first time in two months, no relentless selling pressure was observed.
MN Fund founder Michaël van de Poppe argued the reasons behind recent price suppression were less important than Bitcoin’s current valuation. He was quoted saying, “The current valuation of Bitcoin is extremely low.”
