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.
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.
In the coming weeks, retail will pile in—all while institutions quietly dump their bags. Don’t forget the long…
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.
function subscribed_popupmodal(template_id) {
var templateId = ‘6’;
getAllSubscriberCategoryList([templateId]);
var subcribemodal = window.parent.document.getElementById(‘subscribe-modal-design’);
if (subcribemodal) {
var modalContent = `
Never Miss a Beat in the Crypto World!
Stay informed and gain the edge you need to navigate the crypto world. Select your subscription now
if (storeCheckedId.length === 0) {
var unsubcribedPopUpmodal =
`
You’ve Unsubscribed Successfully
We’re sorry to see you go! Your subscription has been canceled. If you change your mind, you can re-subscribe anytime. Thank you for being part of our community!
Thank you for subscribing to our crypto and blockchain newsletter! You’ll now receive the latest news, insights, and updates straight to your inbox. Welcome to our community!
`;
let selectedSubscriptionsArray = selectedSubscriptionsString.split(‘,’);
let subscribedCategories = selectedSubscriptionsArray.map(subscription => subscription.split(‘_’)[0]);
let subscribedCategoriesString = subscribedCategories.join(‘, ‘);
subscribedmodal.innerHTML = subscribedPopupModal;
if (document.getElementById(‘selectidname’)) {
document.getElementById(‘selectidname’).textContent = subscribedCategoriesString;
}
function closeModal(template_id) {
var modalId = template_id;
var modal = document.querySelector(‘#’ + modalId); // Using querySelector to find the modal
// Function to get cookies
function getCookie(name) {
let value = “; ” + document.cookie;
let parts = value.split(“; ” + name + “=”);
if (parts.length == 2) return parts.pop().split(“;”).shift();
}
// Get user token from cookies
const userToken = getCookie(‘user_token’);
if (subscribewithoutData === ‘true’ && userToken) {
// Call the modal function with the category ID
subscribed_popupmodal(subscribe_clicked_cat_id);
// Remove the flag and category ID from localStorage
localStorage.removeItem(‘subscribe_without_Login’);
localStorage.removeItem(‘subscribe_clicked_id’);
}
});
var listItems = document.querySelectorAll(‘.subscription-options li’);
if (listItems.length === 0) return;
var anyActive = false;
listItems.forEach(function(item) {
var checkbox = item.querySelector(‘input[type=”checkbox”]’);
if (checkbox) {
if (checkbox.checked) {
item.classList.add(‘active’);
anyActive = true; // Set anyActive to true
} else {
item.classList.remove(‘active’); // Remove ‘active’ class if checkbox is unchecked
}
}
});
}
function updateButtonText(anyActive) {
var subscribeButtonSpan = document.querySelector(‘.subscribe-submit .changeBtnText’);
if (subscribeButtonSpan) {
if (anyActive) {
subscribeButtonSpan.textContent=”Subscribe Now”;
} else {
subscribeButtonSpan.textContent=”Unsubscribe”;
}
}
}
function updateSubscriptionButton() {
var listItems = document.querySelectorAll(‘.subscription-options li’);
if (listItems.length === 0) return;
var anyActive = false;
listItems.forEach(function(item) {
var checkbox = item.querySelector(‘input[type=”checkbox”]’);
if (checkbox) {
if (checkbox.checked) {
item.classList.add(‘active’);
anyActive = true; // Set anyActive to true
} else {
item.classList.remove(‘active’); // Remove ‘active’ class if checkbox is unchecked
}
}
});
// Update the button text based on whether any list item has the ‘active’ class
updateButtonText(anyActive);
}
document.addEventListener(‘click’, function(event) {
var clickedItem = event.target.closest(‘.subscription-options li’);
if (clickedItem) {
var checkbox = clickedItem.querySelector(‘input[type=”checkbox”]’);
if (checkbox) {
checkbox.checked = !checkbox.checked;
updateSubscriptionButton();
}
}
});
FAQs
Is Bitcoin’s rise to $82K a dead cat bounce?
Analysts like Jacob King warn it’s a dead cat bounce—short-term recovery before another potential price crash.
Are institutional investors still buying Bitcoin?
No, Bitcoin ETFs saw over $1B in outflows recently, suggesting institutions are exiting despite the price surge.
Will the crypto market crash again soon?
Experts warn a crash is possible if optimism fades and institutions keep selling—despite current price recovery.