After many days of a gloomy market, Dogecoin and Avalanche suddenly surged, leading the latest recovery of the crypto market. However, behind this impressive price increase are signs of potential risks and forecasts of instability looming over the entire market.
Dogecoin and Avalanche: Two standout names in the recovery wave
According to data from #CoinGecko , in the past 24 hours, two standout altcoins are:
Not just DOGE and AVAX, other altcoins also recorded superior increases compared to the rest of the market:
Cardano (ADA): up 6.3%
Chainlink (LINK): up 8%
Meanwhile, Bitcoin (BTC) has only increased by about 4%
The total market capitalization of crypto has increased by 1.8%, reaching 2.62 trillion USD – a clear sign of short-term recovery.
Don't be overly optimistic: Prices are still lower than last week and last month.
Despite a strong daily increase, looking back at the previous week and month, most altcoins are still in a downtrend:
Dogecoin still lower than 9.8% compared to the same week last year, and decreased 16.4% compared to last month.
If calculated from the most recent peak (around $0.36 at the time President Trump took office), DOGE is now down nearly 58%.Avalanche has not fared better, down 9.3% for the week and 10.7% for the month.
This indicates: the current price increase may only be a temporary technical adjustment, rather than a signal of a long-term uptrend.
Bitcoin ETFs continually facing capital withdrawals – Are institutional investors leaving crypto?
Data from Farside Investors indicates that:
Large Bitcoin ETFs have seen net outflows totaling 268 million USD over the last 3 consecutive trading days.
In the last 7 days, 6 days recorded negative ETF cash flows.
This is an important indicator: institutional investors are becoming more cautious, even withdrawing from the market in the short term. This could reduce the bullish momentum of the entire market if this trend continues.
Reason: Concerns about the US economy, tax policy, and an unstable macro environment
One of the factors making the market vulnerable is:
Concerns about import taxes under President Trump's administration
Predictions of a long-term recession in the US stock market, according to veteran investors like Ray Dalio
With the increasing interconnectedness between traditional financial markets and crypto, any major economic fluctuations could impact the prices of digital assets.
Volatility will persist: Warnings from analysts
According to Sean Dawson, head of research at the derivatives platform Derive.xyz:
"I expect strong volatility to continue in the coming weeks as the global economy gradually adjusts to a more unstable environment."
He believes investors are looking to minimize risk, leading to cash outflows from high-volatility assets like crypto.
Long-term perspective: Is volatility an opportunity?
Despite many short-term risks, some large investors still show optimism in the long term. Larry Fink, CEO of #BlackRock – an investment fund holding a large amount of Bitcoin – believes that:
"The market could drop another 20% from the current level. But that creates more buying opportunities than a signal to sell."
This statement was made during a talk at the New York Economic Club, showing confidence that digital assets remain an attractive long-term investment channel, despite short-term volatility.
So what does this mean for crypto investors?
The current price increase is a positive signal, but it is not enough to confirm a sustainable uptrend.
Volatility will continue, especially as macroeconomic factors such as tax policy, the stock market, and ETFs are still putting pressure on crypto.
Investment opportunities still exist, but a clear strategy is needed: choose altcoins with solid fundamentals, monitor ETF cash flow, and wait for reasonable entry points if the market corrects deeper.
In summary:
Dogecoin and Avalanche are 'pulling' the market up after many gloomy days. However, the data suggests this may only be a 'technical recovery'. Volatility will still be the main theme in the coming period, especially as institutional cash flow shows signs of withdrawal. Retail investors need to be cautious, not to be swept up by FOMO, and should closely monitor macro developments to make reasonable decisions.
Risk warning: This article provides information, not investment advice. Investing in cryptocurrencies carries a high level of risk and may not be suitable for all investors. Always do thorough research and only invest money you can afford to lose.
