Bitcoin pushed above $73,000 this week, reclaiming a key psychological level that had capped the market for weeks. Yet the breakout has been met with an unusual reaction across crypto markets: widespread skepticism.

Many traders are warning that the move could become a classic bull trap — a brief breakout that lures in late buyers before reversing lower. Analysts have pointed to heavy overhead supply and positioning in derivatives markets as potential risks, with some suggesting a rally into the $72,000–$76,000 range could attract sellers rather than confirm a sustained recovery.

The caution stems partly from recent history. Earlier this year, Bitcoin appeared to break out of a consolidation range, only to reverse violently. The move trapped momentum traders and triggered a cascade of liquidations as the price plunged from around $98,000 to roughly $60,000 within two weeks — a reminder of how quickly sentiment can flip in crypto.

But the current setup may present a paradox: the trade has become crowded on the bearish side.

Across crypto Twitter, analysts and chartists are widely calling for a bull trap. That consensus itself raises the possibility of the opposite outcome — a squeeze higher that forces short sellers to cover. In leveraged markets, strong directional agreement often creates the liquidity needed for moves in the other direction.

Macro uncertainty could also complicate the outlook. Geopolitical tensions following the Iran conflict have already pushed gold higher and lifted oil price expectations, while some Asian equity markets have shown signs of stress. Radu Tunaru, professor of finance and risk management at Henley Business School, argues geopolitical shocks have historically played a role in major market sell-offs. He points to the 1987 Black Monday crash, which he believes was partly triggered by U.S.–Iran tensions that first rattled Asian markets before spreading globally.

For now, Bitcoin’s breakout above $73,000 has revived bullish momentum — but price action over the coming days will determine whether a bottom is truly in or if this is an accurately predicted bull trap.

To regain a bullish macro structure, bitcoin needs to trade back into the $98,000 region to snap the grueling lower high formed by the previous bull trap in January.

According to Dalio, there are important differentiating characteristics between bitcoin and gold, and these traits are pushing institutions to the latter.

The billionaire investor and founder of the leading hedge fund, Bridgewater Associates, Ray Dalio, has once again criticized bitcoin (BTC). This time, Dalio rejected comparisons between the cryptocurrency and gold, stripping the digital asset of its safe-haven narrative.

During an interview with the All-In Podcast, the Bridgewater founder insisted that BTC has not played the role of a safe-haven like gold. He accepted that bitcoin has been receiving a lot of attention as a form of money but faces long-term threats. Dalio’s comments come as financial assets react to geopolitical tensions amid the ongoing U.S.-Iran crisis.

Dalio Rejects BTC Comparisons to Gold

According to Dalio, there are important differentiating characteristics between bitcoin and gold. The former lacks privacy; transactions can be monitored and indirectly controlled by entities. Such qualities, in the billionaire’s opinion, would make central banks and large institutions reluctant to buy and hold it.

On the other hand, these institutions are consistently buying and holding gold because the precious metal is widely considered a store of value and an inflation hedge. Dalio highlighted that the precious metal is not an asset that is speculated on, contrary to what most people have come to believe. In fact, he mentioned that gold is the most established form of money and the second-largest reserve currency held by central banks.

Moreover, gold does not face the same threats as Bitcoin. Dalio mentioned growing concerns about the possible effects of quantum computing on the Bitcoin network. So, despite getting a lot of attention, especially from individuals, and being considered as alternative money, bitcoin still has a relatively small and controlled market in comparison to gold.

It is worth noting that Dalio has developed some kind of love-hate relationship with BTC over the years. Once a critic, the investor began to embrace the cryptocurrency in 2021 and even gained exposure to it. Still, he believes gold is the ultimate financial asset, and BTC does not come close.

Gold Hit Heavier By U.S.-Iran Conflict

Despite Dalio dismissing bitcoin’s safe-haven narrative, the digital asset has performed relatively well since the U.S.-Iran conflict began. On March 3, the day Dalio made these remarks, gold lost 6% during trading hours, falling from $5,377 to $5,039, according to TradingView data. BTC, on the other hand, fell by a mere 3.7% over the same timeframe.

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Comparing the price movements of both assets on that day directly challenges Dalio’s statements, as gold was more affected by the very crisis it is supposed to shield investors from.

The US Senate will soon vote on Donald Trump’s nominee to head the US Federal Reserve after the president picked Kevin Warsh, who has previously expressed pro-Bitcoin views, to replace Fed chair Jerome Powell.

In a Wednesday notice, the White House said that Trump had sent Warsh’s nomination to the Senate to be chair of the Board of Governors of the Federal Reserve for a term of four years, and as a Fed governor for 14 years. The president had previously taken to social media to announce Warsh was his pick to replace Powell, whose term as chair ends in May but may stay on as a Fed governor until 2028.

Warsh served as a Fed governor under former US Presidents George W. Bush and Barack Obama from 2006 to 2011. He went on to become a Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution of Stanford University. 

The prospective Fed chair has made many public statements favoring Bitcoin (BTC) adoption. In a January 2021 interview with CNBC’s Squawk Box, he said “if Bitcoin never existed gold would be rallying even more right now, but I guess if you are under forty, bitcoin is your new gold.” In a 2025 interview with the Hoover Institution, Warsh said the cryptocurrency “could provide market discipline, or […] could tell the world that things need to be fixed.” 

“Bitcoin does not make me nervous,” said Warsh. “I can hearken back to a dinner I had here in 2011 with […] Marc Andreessen, who showed me the white paper […] I wish I had understood as clearly as he did how transformative Bitcoin and this new technology would be. Bitcoin doesn’t trouble me. I think of it as an important asset that can help inform policymakers when they’re doing things right and wrong.”

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Powell’s term as chair ends on May 15, while his term as a Fed governor ends on Jan. 31, 2028. Although Trump has previously announced threats to fire the Fed chair, he is expected to finish his term.

It was unclear at the time of publication when the Senate would consider Warsh’s nomination, but he could face opposition from many Democratic lawmakers. Minority Leader Chuck Schumer said in January that Republican lawmakers “must not move Mr. Warsh’s nomination forward,” given Trump’s attempts to “cannibalize the Federal Reserve to eliminate its independence.”

“[Warsh] must make clear that he would keep the Fed independent and free from Donald Trump’s bullying, or else, he must not be confirmed,” said Schumer.

CFTC still lacks nominations for leadership

Although Trump officially announced his pick as Fed chair, as of Wednesday the president had not sent any additional nominations to the Senate to staff the Commodity Futures Trading Commission (CFTC).

Michael Selig, who was confirmed as CFTC chair in December, remains the sole leader at the financial regulator, which normally has five commissioners. The agency is expected to have additional oversight and regulatory power over digital assets should a market structure bill moving through the Senate become law.

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