Alex Dovbnya

Bitcoin has seen a modest rally, but Paul Krugman claims it is a dead cat bounce

While the Bitcoin community is excited about the flagship cryptocurrency’s partial recovery, Nobel-winning economist Paul Krugman is confident it’s just a flash in the pan.

Image by tradingview.com

In a recent tweetthe esteemed intellectual says the recent award “probably” is just a dead cat.

During bear markets, it is typical for cryptocurrencies and other assets to see short-lived rallies before prices resume the downward trend.

On June 18, Bitcoin price collapsed to $17,930, its lowest level since early December 2020 on the Bitstamp exchange.

The largest cryptocurrency has since risen nearly 14% and managed to briefly regain the $20,000 level.