When Will Bitcoin and Altcoins Recover? Analyst Gave a Date for Relief: "Dead Cat Bounce..."

The Crypto market experienced a sharp sell-off today, but analysts say the drop is more related to global economic uncertainty than to issues within the crypto sector itself.

Dr. Kirill Kretov, a senior automation specialist at CoinPanel, highlighted a combination of macroeconomic tensions as the fundamental factor behind the recent get dumped.

Kretov said, “We are in a period where customs tariff conflicts are escalating, geopolitical hot spots are increasing, and macro signals are conflicting, leading to increasing global uncertainty,” and added: “These factors are coming very close to each other. In this environment, investors are pulling away from risky assets and turning towards safer assets like US Treasury bonds and gold. Cryptos, especially altcoins, are bearing the brunt of this pressure.”

Despite the recent decline, some analysts believe there could be a short-term recovery on the horizon. According to Chu, an analyst at BRN, the oversold market conditions may lead to a temporary rebound starting from mid-week.

Chu stated, “Since risk assets are oversold in the short term, a short-term relief may be seen within the next one or two days,” and added: “With the release of the FOMC meeting minutes on Wednesday, the US CPI and initial unemployment claims on Thursday, and the PPI and Michigan University consumer sentiment data on Friday, the market could witness a ‘dead cat bounce’ that might start on Wednesday and last for at least a few weeks.”