 ▲ Bitcoin (BTC) / ChatGPT-generated image © |
As risk appetite revived, both the New York stock market and the cryptocurrency market rebounded in tandem. However, after Bitcoin surpassed $73,000, some analysts warned that the current rally could be limited to a short-term rebound.
According to CoinMarketCap data as of 6:11 a.m. KST on March 5, the global cryptocurrency market capitalization rose 6.41% over the past 24 hours to approximately $2.48 trillion. Bitcoin (BTC) climbed 7.33% to trade at $73,023.87, while Ethereum (ETH) advanced 8.98% to $2,144.45. Dogecoin (DOGE) surged 15.28% to $0.1023, and major altcoins also posted strong gains, with Solana (SOL) up 9.64% and XRP (Ripple) rising 7.62%.
The rally is interpreted as being aligned with a recovery in global financial market sentiment. On March 4 (local time), the Dow Jones Industrial Average rose 238.14 points (0.49%) to close at 48,739.41, while the Nasdaq Composite gained 290.79 points (1.29%) to 22,807.48. Hopes for easing geopolitical tensions emerged amid the possibility of behind-the-scenes negotiations between the United States and Iran. In addition, U.S. private payrolls increased by 63,000 in February from the previous month, exceeding the market forecast of 48,000, further boosting investor appetite for risk assets.
Nevertheless, some market participants suggest that Bitcoin’s recent rebound could resemble a past “bull trap.” According to CoinDesk, although Bitcoin has reclaimed key support levels after breaking above $73,000, a similar sharp rise last January was followed by a steep decline from $98,000 to $60,000 within about two weeks. Analysts cautioned that the current move could also prove to be a typical bull trap, where prices break out briefly, attract late buyers, and then reverse downward. Excessive selling pressure and positioning in the derivatives market were also cited as potential risk factors.
Some experts believe Bitcoin could climb to the $72,000–$76,000 range, but warn that this zone may trigger strong selling pressure. They noted that the rally may not necessarily develop into a sustained bull market and that the possibility of re-entering a correction phase after a short-term rebound cannot be ruled out.
On the other hand, some argue that the market downturn may have already ended. Owen Lau, an analyst at New York-based brokerage Clear Street, said that Bitcoin’s move above $73,000 could signal that the market has bottomed. He explained that U.S. President Donald Trump has urged the passage of the CLARITY Act, a cryptocurrency market structure bill, increasing the likelihood of congressional approval before summer. He also noted that Kraken’s approval for a Federal Reserve master account marks progress in the integration of crypto into financial infrastructure.
Expanding institutional participation is also viewed as a positive factor. Morgan Stanley is preparing to launch its “Morgan Stanley Bitcoin Trust,” designating BNY Mellon and Coinbase Custody Trust Company as custodians. Lau described these moves as evidence of growing institutional involvement in the market. He added that amid rising geopolitical tensions in the Middle East, blockchain networks are increasingly being highlighted as alternative payment infrastructure, signaling broader structural changes across the cryptocurrency industry.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.