Coinbase: Short Squeeze Could Fuel Temporary Crypto Market Rebound

• Coinbase issued a warning for investors to not fall into the bear trap.
• Analyst David Duong believes that the market will remain bullish in the long term.
• The sluggish period will last through “the Fed decision in mid-September.”

Coinbase, the largest cryptocurrency exchange in the U.S., has issued a stark warning to crypto investors following the recent market turmoil that saw Bitcoin (BTC) plunge below $50,000. In a blog post, Coinbase analyst David Duong cautioned against being “fooled” by the current rebound and emphasized that the market will likely remain volatile in the short term.

Duong stated, “We believe these market jitters will persist in the short-term, but it’s possible that shorts could get squeezed here, which could lead to a market rebound in the next few days.” The analyst cited recession fears and the upcoming Federal Reserve decision in mid-September as potential headwinds for the crypto market in Q3.

The recent crypto market crash, triggered by the Bank of Japan’s (BOJ) interest rate hike and subsequent reversal, wiped out millions in value from the space. Bitcoin and Ethereum (ETH) experienced significant declines, falling to $50,…

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