One cryptocurrency trader said that the cryptocurrency market's decline on Friday may actually represent the early stages of an uptrend.
“I think there is a very high chance that this is the beginning of a bull market,” cryptocurrency trader Alex Baker said in a video posted on YouTube on Saturday.
“I think selling now might be the stupidest thing you can ever do,” Baker said. Jan3 founder Samson Mow echoed similar sentiments in an X post the same day, saying: “It’s time for Bitcoin’s next step.”
Baker's comments come after Friday's crypto market wipeout overshadowed every previous decline, with Bitcoin (BTC) falling more than 10% to $102,000 following Trump's 100% tariff on China announcement. The $19.31 billion liquidations were more than ten times the losses seen during the COVID-19 collapse ($1.2 billion) and the FTX collapse ($1.6 billion).
Cryptocurrency Market Survey 'Just Resetting Everything'
The collapse sent shockwaves through the global cryptocurrency community, but Baker called it a “massive overreaction,” saying the big wipe “just resets everything.”
Baker argued that traders were frustrated after Bitcoin surged for a year while the rest of the cryptocurrency market lagged behind.
“I think that's about to change,” he said. “This drove people crazy, and I saw market makers pulling the levers up and down,” Baker said, adding:
“Everything they do in the market is overrated three to four times, because people are not going to wait a few months to get the gains they need.”
According to Baker, the sharp correction was driven in part by “perpetual impatience” among investors over the past few weeks.
The analyst says that the price of Bitcoin will rise in the short term
Bitcoin reached a new high of $125,100 on Monday but is still short of the year-end targets of $250,000 predicted earlier in the year by names like BitMEX co-founder Arthur Hayes and Unchained's director of market research Joe Burnett.
Related to: Analyst: Market collapse “has no long-term fundamental effects.”
Cryptocurrency analyst Benjamin Quinn shares the same optimism as Baker. “I still think it will continue to go higher in the short term,” Cowen said of Bitcoin, noting Bitcoin’s 60% dominance was restored on Friday.
Economist Timothy Peterson was more cautious, telling Cointelegraph on Sunday that Bitcoin will likely enter a three-to-four-week “cooling off period” before the asset resumes its rally. “But perhaps at a slower pace than before,” he added.
The broader industry has become more skeptical, with the Crypto Fear & Greed Index, which measures overall cryptocurrency market sentiment, recording a “extreme fear” score of 24 in its update on Sunday.
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