Why Experts Are Warning Bitcoin Rally Could Be A “Dead Cat Bounce”

Bitcoin has been posting strong gains recently. The latest surge has helped the coin recover much of the losses it recorded over the past few weeks. However, not all market analysts are convinced of a sustained Bitcoin rally. Experts like Arthur Hayes claim that the prevailing BTC price trend could simply be a “dead cat bounce.” This indicates that the current price surge is just a temporary recovery before a potential downturn.

Arthur Hayes Urges Caution Despite Bitcoin Rally

Over the past day, the BTC price has seen a remarkable surge of over 6%. Despite the burgeoning conflict between the US and Iran, this Bitcoin rally lines up with the crypto-wide recovery. As of press time, the coin is valued at $72,588, up 6.37% in a week and down 7.5% in a month.

This positive turn, seen after days of volatility, has sparked intense speculation about a sustained Bitcoin rally. Many believe that the pioneer cryptocurrency has entered its next bull run and will be capable of erasing all previous losses.

However, BitMEX founder Arthur Hayes puts forward a different view via an X post. According to him, the current Bitcoin rally is just a “dead cat bounce.” This stock market term refers to a short an temporary price recovery after a long decline. It also indicates that the surge will last only for a short term, paving the way for another major crash. The term comes from the idea that even a dead cat will bounce if it falls from a great height.

Recently, Hayes attributed the BTC price crash to BlackRock’s IBIT fund. He noted that the Bitcoin sell-off was likely driven by dealer hedging linked to BlackRock’s iShares Bitcoin Trust (IBIT) structured products.

Hayes further suggested that BTC is still closely tied to the performance of the US SaaS technology companies. This implies that the crypto hasn’t yet fully decoupled from the broader tech sector, particularly the high-growth software companies that tend to move with risk-on market sentiment.

Analyst Says BTC’s Short-Term Direction Remains Unclear

Another prominent analyst who raised concerns about the current Bitcoin rally is CrediBULL Crypto. He shared a cautious outlook on Bitcoin’s short-term price movement.

Despite my confidence in us currently forming a mid/HTF bottom above 50k, sometimes I don't have high confidence in where price is headed in the short term.

This is one of those instances (not sure if BTC is ready for expansion or will continue to range on low timeframes).… https://t.co/EQdfe14Xyh

— CrediBULL Crypto (@CredibleCrypto) March 5, 2026

According to the analyst, BTC price may be forming a mid-to-higher-timeframe bottom above the $50k level. He added that the coin’s short-term direction remains uncertain. Bitcoin could either begin a stronger upward move or continue trading within a range for some time, stated the analyst.

It is worth noting that this current BTC price surge comes alongside a significant uptick in the gold price. As CoinGape reported earlier today, both BTC and gold saw significant hikes today. This comes as the Trump government announced a multimillion-dollar gold deal between the United States and Venezuela.