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Bitcoin price has soared back towards 82k as it bounces back from its five-month low of $74.5K. This surge comes after President Donald Trump’s surprise decision to pause most tariffs for 90 days.
While investors see this as a glimmer of hope, financial analyst and Whalewire founder Jacob King warns of an upcoming crash. He warns that this surge is just a “dead cat bounce”—a temporary rise before another major crash.
Retail Investors Falling for the Trap?
According to Jacob King, a well-known market analyst, this recent rally could be a “dead cat bounce”, a temporary recovery before another major downturn.
Further, Jacob explained that delaying tariffs by 90 days has created a sense of hope, making small investors think the worst is over. Meanwhile, big institutions, which have already made profits, are using this opportunity to sell their holdings before prices fall again.
In a tweet, King said, “Exactly as predicted, we’ve officially entered the dead cat bounce phase: delay the tariffs, bait the retail crowd back in, and set the stage for the next red wave.”
Market Data Confirms Prediction
However, market data supports his concerns. Despite the recent price surge in Bitcoin and Ethereum, U.S. listed Bitcoin ETFs continue to experience massive outflows, exceeding $1 billion in the recent two weeks.
Even Ethereum ETFs have seen an overall outflow of 73 million, showing that institutional investors are choosing to cash out rather than hold on.
Could This Rally Be Different?
Not everyone thinks this surge is a trap. Prominent analyst Amit believes the last market bounce was weak because it had no real reason behind it. This time, he sees things differently. “If the tariffs are delayed, we finally have a real reason for the market to go up.”
Amit further explained that the 10% tariffs were already priced in. But if the 90-day pause leads to a deal with China, the market could stay strong instead of crashing again.