Cryptocurrency prices have been on the rise since early this month, with Bitcoin and Ethereum seeing substantial gains since hitting all-time highs in November 2021. This recent surge has sparked debate among digital asset enthusiasts, who are split between predicting a market rally or a prelude to more pain.
The current price of Bitcoin is 67% lower than its peak, yet it has still managed to climb 38% this month to $22,858, its highest price since last August. Meanwhile, Ethereum has seen the value of ETH rise around 38% to $1,645, according to CoinGecko.
The cause of this recent surge may have been the recent economic report which showed inflation cooled in December. The reading also raised hopes that the Federal Reserve would raise interest rates less aggressively than last year to rein in rising prices.
The debate between a bull trap and a bottom is ongoing, with some analysts taking the bearish opinion that the rally is manipulated. A Twitter poll conducted by a popular cryptocurrency page reached a consensus among more than 18,000 participants that the rally was in fact a bull trap on January 15.
A prominent influencer and self-proclaimed cryptanalyst also agreed with the bearish opinion, saying that the rally “clearly seems manipulated” and is the “biggest bull trap” they have ever seen.
