Crypto crisis: top trader warns of bear market – what now?

Crypto crisis: top trader warns of bear market – what now?

At the beginning of the week, the crypto market shows a recovery: Bitcoin recorded an increase of around 2.5 percent and exceeded the 111,000 US dollar mark. This increase is causing Bitcoin to reach a new all-time high in the short term. Ethereum and many altcoins also benefit as they record double-digit increases. However, despite this positive development, there are warnings of a possible cycle top in the market that could impact future stability.

An interesting twist comes with the announcement of the well-known trader CRYPTO₿IRB, who wants to strategically reorient his capital allocation, including a withdrawal from the crypto market. This is not a complete departure as he plans to invest in more stable asset classes. CRYPTO₿IRB cites cyclical patterns in the Bitcoin ecosystem that often lead to bear markets in US election years. Historically, average declines in such markets have been over 65 percent, with drawdowns as high as 80 percent. This view is supported by current analysis and developments in the market that indicate an impending bear market.

Risks and market forecasts

According to analyst Leshka.eth, there are already four out of nine warning signs that indicate an impending bear market. In addition, Ki Young Ju sees a clear downward movement in Bitcoin in the on-chain data. Trader ArthurFleck estimates the probability of a completed top for Bitcoin to be 80 percent. However, these analysts warn of the dangers that an apparent recovery poses, as it could lull investors into a false sense of security.

A bear market is defined by a significant, sustained decline in price, usually over 20 percent from the previous high. Bitcoin is currently trading in a stable sideways movement after a correction of around 30 percent from its all-time high. Despite the current recovery, the crucial question about the medium-term development of the price remains open. Liquidity and geopolitical news play an essential role here.

Innovations in the crypto market

Parallel to the market movements, a new project is coming into focus: the trading bot Snorter, which is focused on efficiency and security, shows promising functions such as order placements, wallet management and automated copy trading. The technical basis of Snorter is the Solana blockchain. Particular attention should be paid to the SNORT token, which is central to the system and provides access to premium features. The token exists both as an SPL token on Solana and in an ERC-20 version on Ethereum. An attractive staking model offers investors an APY of over 200 percent, while the SNORT token is currently available for pre-sale.