Markets· ★★· bearish·

Henrik Zeberg: Bitcoin rally is a 'sucker's rally' within a bear trend

  • Zeberg: the recent BTC rise is a bear-market rally, not a new bull run
  • A possible trigger for a decline is a stronger dollar as a US recession approaches
  • During the pandemic Bitcoin lost more than 60% in four weeks; in a more severe crisis the sell-off would be deeper
  • Rising liquidity and improving regulation will not save the market if the economy deteriorates sharply
Why it matters: A warning of downside reversal risk: in a US recession Bitcoin could fall alongside risk assets.
Source: Bits.media