Crypto Market in ‘Dead Cat Bounce’ Phase, Institutions Cashing Out

Bitcoin has surged back toward $82,000, recovering sharply from its five-month low of $74,500. This rebound comes after President Donald Trump made a surprise decision to pause most tariffs for 90 days, giving the market a boost of confidence.

But while the move has sparked optimism, some experts are warning it might not last.

A Short-Lived Rally? Analyst Sounds the Alarm

Not everyone sees this price jump as a good sign. Financial analyst and Whalewire founder Jacob King is calling it a “dead cat bounce”—a brief recovery before another major drop.

King believes the 90-day delay has created false hope for smaller investors, leading them to believe the worst is behind them. At the same time, large institutions—who already made profits—are using this moment to sell before the next potential crash.

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.”

Data Shows Institutions Are Pulling Out

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.

Other Analysts See a Different Picture

However, not all experts agree that this bounce is a trap. Analyst Amit believes this rally could be stronger than the last one. He says the previous bounce lacked a real reason, but this time, the delay in tariffs gives the market something solid to move on.

He also explained that the expected 10% tariffs were already priced in. But if the pause leads to a trade deal with China, the market could stay strong instead of crashing again.

With opinions split and institutions still cautious, the market is at a crossroads. As Bitcoin climbs past $80K, the big question is whether this rally can hold—or if it’s just the start of another drop.

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