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Bitcoin Bears Learn a Harsh Lesson as Weeklong Downturn Comes to a Sudden End

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Published on:
April 26, 2021

The largest cryptocurrency retook its $1 trillion market cap, jumping nearly $7,000 in the space of a few hours.

Bitcoin Bears Learn a Harsh Lesson as Weeklong Downturn Comes to a Sudden End

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Bitcoin smashed a weeklong bear market on Monday — rising nearly $7,000 to retake $54,000 after falling close to $47,000 on Sunday.

 

That saw short positions worth $150 million liquidated, and took Bitcoin’s market capitalization below $1 trillion briefly, a psychologically important number many analysts had predicted would hold. 

 

At the time of writing, Bitcoin was up 13% on the day, after retreating by about 27% from its 30-day (and all-time) high of $64,863.10.

 

“And just like that -> people are chasing to get back into the markets,” the popular trader Michaël van de Poppe tweeted at 3pm GMT on Monday.

 

That came after his early morning comments about the state of the market being FOMO — fear of missing out: 

“During the weekend; the mass was in panic. During today and after the bounce; euphoria is back. People want to buy back in, while yesterday's expectations were that markets would go lower. People sold the low, to hopefully buy back lower. Now they have FOMO. Welcome to crypto.”

The Bitcoin Fear & Greed Index is well into fear at 27 at this writing, compared with the greed-centric 74 of last week.

 

At that time — 7am GMT — van de Poppe predicted that the “most asked question” over the next 24 hours would be: “Hey, do you expect correction to happen in the markets soon? I still need to buy.”

 

Altcoins Bounce Back, Too

Bitcoin wasn’t alone in its bounce back, with No. 2 cryptocurrency Ether up 6.6% to $2,484 after briefly retaking $2,500 today. That’s compared to a 24-hour low of $2,172 — a rise of nearly 15%

 

Binance Coin was up more than 12%, while XRP was up more than 25% after retreating below $1. Cardano rose almost 20% and Polkadot more than 15%.

Author(s)

Leo Jakobson

I'm an NYC-based journalist covering crypto and business.

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