Gold, Silver Rebound; Bitcoin, Ethereum, Dogecoin Also Trim Losses: Why This Analyst Sees 1-2 Years Of 'Strong Bull Market' Ahead

Leading cryptocurrencies recovered, alongside stocks and gold, on Monday, as investors showed a higher risk appetite.

Crypto Market Sees Relief Rally

Bitcoin pared some losses Monday, following a brutal sell-off that wiped all of its post-election “Trump rally.” Trading volume for the apex cryptocurrency surged 35%.

Ethereum rebounded but faced heavy resistance at the boundary of $2,400. XRP and Dogecoin also traded in the green.

Meanwhile, shares of cryptocurrency-related companies, including Strategy Inc. (NASDAQ:MSTR)  and Bitmine Immersion Technologies Inc. (NYSE:BMNR), closed down 6.73% and 9.16%, respectively.

Over $550 million was liquidated from the market in the last 24 hours, according to Coinglass, with long liquidations accounting for the majority.

Notably, over $300 million in Bitcoin shorts risked liquidation if the apex cryptocurrency rebounds to $85,000.

The "Extreme Fear" sentiment persisted in the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization stood at $2.65 trillion, following an increase of 2.27% over the past 24 hours.

Stocks, Gold Rise

Stocks began the new trading month on a high. The Dow Jones Industrial Average rallied 515.19 points, or 1.05%, to close at 49,407.66. The S&P 500 climbed 0.54% to finish at 6,976.44, while the tech-focused Nasdaq Composite lifted 0.56% to end the session at 23,592.11.

Precious metals trimmed losses following sharp declines over the weekend.. Spot gold was up 3% to $4,789.09 an ounce, while spot silver traded up 4.50% to $82.74 an ounce.

Bitcoin In Bear Market?

Blockchain analytics firm CryptoQuant spotted "clear signs" of a Bitcoin bear market, with Supply In Loss now exceeding 44%.

"In previous cycles, this behavior did not appear during healthy pullbacks, but rather at the early stages of bear markets," the firm said. "This no longer looks like a mid-cycle dip."

Michaël van de Poppe, a well-known cryptocurrency trader and analyst, argued that Bitcoin’s bull market doesn't peak when the U.S. Manufacturing Index falls below 50.

The analyst noted the index hovering around the 50 level in January, mirroring the early days of the 2016-17 bull cycle.

"I think that we’ll have 1-2 years of strong bull market in front of us,"" Van De Poppe projected.

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