Crypto trader Intuitio declared the current market downturn a “bear trap,” comparing it to the 2021 summer bear trap while noting the stronger positions of Bitcoin BTC/USD and Ethereum ETH/USD this time around.

What Happened: Intuitio asserts that the present summer bear trap closely mirrors that of 2021. He points out that the bear trap in 2021 spanned from mid-April to mid-July, lasting three months. He adds that currently, we are two months into a similar bear trap.

A significant observation is the pattern in altcoin performance. In 2021, most altcoins dropped by 60-70%, while now they are down about 60%. However, the strength of Bitcoin and Ethereum sets the current scenario apart. In 2021, Bitcoin fell by 55%, but it is now only down 20%. Similarly, Ethereum declined by 65% in 2021 but is only down 30% now.

Intuitio attributes this relative strength to the influence of cryptocurrency ETFs, which have bolstered the two leading cryptocurrencies. He states this as “an amazing sign of strength.”

Reflecting on the aftermath of the 2021 bear trap, where quality altcoins surged 10x from their lows, Intuitio believes a similar rebound is imminent. “Bottom is very close. We are going to pump very soon. And yes, ETH will lift the whole market,” he asserts.

However, he emphasizes that not all assets will perform equally, with some pumping more than others.

Also Read: Crypto Expert Reveals How To Find ‘High-Risk High Reward’ Meme Coins

Why It Matters: Intuitio advises investors to remain focused and strategic, particularly on the fastest meme and AI coins, recommending concentrated bets on a maximum of four coins with big longs. He stresses the importance of the next six months, describing them as crucial for building significant positions in the market.

The trader suggests holding your ground, staying observant, and preparing for a surge in the crypto market. As he puts it, “Hold up your head and keep grinding,” signaling that those who navigate wisely through this bear trap will emerge stronger in the impending market upswing.

However, Former Wall Street Macro Trader Wizard Of SoHo has a different viewpoint on this. He states that it would be the biggest mistake to compare this cycle to 2021. He adds, “That cycle had trillions in stimulus and zero rates injected into the economy. This cycle has had zero new money injection.”

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Trader Nets A 553X Return With Meme Coin Of ‘The Most Memeable Cat On The Internet’

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

Welcome to another edition of Crypto NFT Today! The past two weeks have been full of must-know events that’ll be defining points for the future of blockchain, cryptocurrency, and NFTs.

With President Biden blocking a Chinese bitcoin mine, Wells Fargo announcing new investments in ETFs, and more, there’s lots of essential news you should know about. So, let’s dive in and see what’s happening! 

President Biden Blocks Chinese Bitcoin Mine

On May 14, President Joe Biden issued a directive prohibiting a Chinese-backed cryptocurrency mining company from possessing land adjacent to a nuclear missile base in Wyoming, citing concerns about national security.

The directive mandates the sale of property utilized as a cryptocurrency mining facility near the Francis E. Warren Air Force Base. MineOne Partners Ltd., a company partially supported by Chinese investors, and its subsidiaries are instructed to dismantle specific equipment on the premises.

This action coincides with the United States’ plans to impose significant new tariffs on electric vehicles, semiconductors, solar equipment, and medical supplies imported from China.

Wells Fargo Announces Investments in ETFs

According to a regulatory disclosure, Wells Fargo & Company (WFC) has revealed its involvement in cryptocurrencies by investing in several Bitcoin exchange-traded funds (ETFs). This move reflects a growing interest in digital assets within the financial sector.

The disclosure indicates that Wells Fargo has acquired shares of Grayscale’s GBTC Bitcoin ETF, providing the bank with approximately $141,817 worth of exposure to the digital currency. Additionally, Wells Fargo has made a smaller investment of less than $1,200 in the ProShares Bitcoin Strategy ETF (BITO). This ETF enables investors to gain exposure to Bitcoin futures contracts, allowing them to speculate on the future price movements of the cryptocurrency.

Wisconsin Buys Blackrock Spot Bitcoin ETF

According to a filing, the U.S. state of Wisconsin acquired 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) in the first quarter, valued at nearly $100 million.

Following this news, Bitcoin experienced a 1% increase, currently trading at $61,957. However, it saw a 1.7% decline over the past 24 hours, coinciding with the release of new inflation data exceeding expectations during U.S. morning hours.

Wisconsin, which submitted its quarterly 13F report to the Securities and Exchange Commission (SEC) on Tuesday, becomes the first state to publicly disclose its bitcoin investment. Additionally, the state’s investment board bought shares of Grayscale’s Bitcoin Trust (GBTC) valued at approximately $64 million.

OKX Australia Launches

OKX, a cryptocurrency exchange, has launched its services in Australia, offering spot and derivatives trading options for local users.

This move follows OKX’s establishment of a Sydney office in May last year and marks the latest expansion into international markets, joining previous entries in countries like Turkey and Singapore.

OKX’s expansion into Australia reflects the growing interest in cryptocurrencies among Australians. Notably, the Australian Securities Exchange (ASX) is considering the potential introduction of Spot Bitcoin ETFs by the end of 2024.