A crypto blogger stated that the recent increase in the price of Bitcoin is nothing but a simple cat bounce and the price will fall down again in the very near future. A Motley Fool blogger named Kevin Godbold stated that the basics of the cryptocurrency world had not strengthened yet and the sudden surge in the price of Bitcoin this month is just a dead cat bounce.
He published a blog post on May 26th and according to that the price of Bitcoin increased 120 times more than what it was in January, but he warned people to not overwhelm by seeing the price. He said that the price would nosedive very soon.
Dead cat bounce means nothing but recovering temporarily from a big loss. It came from the idiom, “even a dead cat bounces back if it falls fast enough.”
The people started investing in Bitcoin as its price was decreased a lot recently and this led to an increase in demand for it and eventually the price also increased. As more people start buying the coin, the price of Bitcoin went higher. As more and more speculators have joined in this spree, the price of Bitcoin kept on increasing. But very soon these speculators will be out of power and then they won’t be able to invest any money in the cryptocurrency. Once it happens, the price of the Bitcoin will fall pretty soon.
There is no change in the value of Bitcoin; only one speculation has changed all the things. Bitcoin is moving upwards pretty quickly, but it is pretty risky. Goldbold said that he will not invest in that Bitcoin now as it is riskier than ever.
Goldbold agreed that this spike in Bitcoin value is something unexpected.