Analysts: Crypto market undergoing healthy correction, not bear market

Despite the cryptocurrency market falling 13% year-to-date and BTC undergoing an 8% correction, some analysts argue this is a healthy adjustment rather than the start of a bear market. According to CryptoPotato, Bloomberg Senior ETF Analyst Eric Balchunas noted that BTC has surged 468% over the past two years, an annualized return of 138% that is eight times that of U.S. stocks. He assessed that this year's correction represents giving back only a small fraction of those substantial gains. Futures trader Toni added that the market is in a healthy consolidation phase, not a downturn. He emphasized that several factors have supported a bull market this year, including a pro-crypto policy stance in the U.S., record highs in stock and commodity markets, institutional investor inflows, and an expanding global money supply. Toni also remarked that market rebounds typically begin when traders are exhausted and frustrated, not when they are optimistic.