The crypto markets have been generally green since the weekend in what appears to be a sign of a good recovery from the losses of the past weeks. Ethereum (ETH) seems to be leading the rally amongst the top 10 cryptocurrencies by market cap, having gained by 9.25% in the past 24 hours, with Bitcoin (BTC) surging by 4%. However, some traders have dismissed recovery claims, warning that the gains accrued during the weekend will likely be dumped relatively shortly.
“Weekend pumps are typically not to be trusted” – Josh Rager
Following the Consumer Price Index (CPI) report of July 13, which showed that inflation increased by 9.1% since June 2020, slightly above the 8.8% estimate, crypto enthusiasts braced themselves for the further collapse of an already awful market. Surprisingly, the crypto markets remained steady notwithstanding the report, and the massive FUD pumped into the space.
And now, conversely, the market seems to be recovering, having shown some solid resistance to the sentiments influenced by the CPI report, leading some market watchers to wonder if Crypto is now resistant to macroeconomic conditions. The weekend especially saw a positive outlook in the space. But some traders are sceptical.
The firstborn crypto, BTC, has gained by 13% since the CPI report after struggling to maintain the $19k position on July 13. The asset now trades at $24.5k as of press time. The altcoins have followed in its lead, concurrently staging respective rallies.
Amid this positive performance, some traders have asked investors to be wary of the weekend gains. “Weekend pumps typically are not to be trusted,” said Josh Rager, notable crypto analyst, trader and co-founder of crypto educational platform, Blockroots.
Additionally, crypto analyst and trader ‘il Capo of Crypto’ warned investors against letting the hype on Twitter push them to rely too much on the gains accrued over the weekend. “Not worried about the scam pump. Still fully out of the market, soon you will see why,” he added.
The crypto markets have reclaimed a $1T combined market cap
This dread of a pump ruse emerged from Binance, the largest crypto exchange by trade volume, which saw an inflow of 17,500 BTC tokens within 24 hours over the weekend.
Nonetheless, some analysts have remained optimistic about market performance and hope for a continued rally. Taking to Twitter, Michaël van de Poppe – crypto trader and CEO of Crypto Consultancy and Educational Platform, Eight – said, “Overall, strength is still there, and I’m assuming further upside is happening.”
The crypto markets have reclaimed a $1T combined market cap following the recent upsurge. As of press time, ETH currently trades at $1,729, the highest it has been in a month, having gained by 28.58% in the past seven days. With a current value of $24,555, BTC has seen an increase of 7.88% in the past seven days. The digital gold momentarily dipped below the $19k mark on July 13 but has since rebounded and is trading well above it.