If you look around on Twitter, it seems that the crypto market is anything but bearish.

Friday and Saturday were marked by extremely strong rallies in altcoin prices – despite consolidation in the two leading cryptocurrencies.

Many small-caps, medium-caps, and even large-cap altcoins enjoyed gains of 10-50 percent yesterday, causing Bitcoin dominance to drop sharply to 65 percent (at the time of this article). At the beginning of the week, the metric was still at 68.5 percent.

But that price action didn’t convince all analysts that Bitcoin, Ethereum, and the rest of the market are ready to move higher.

Bitcoin in a bear market?

Qiao Wang, a crypto-asset investor who formerly worked for Messari and Tower Research, believes that Bitcoin (For Bitcoin buy manual ) and the crypto market may not be in a full-blown bull market, as some have speculated.

He announced on Jan. 15 that he thinks we might find ourselves in a „mini bear market“ due to the large amount of speculators, as evidenced by the funding rates of the crypto futures markets:

“IMO we’re in a mini bear market. Not enough conviction to short and certainly I think we’ll be a lot higher in 6-12 months. Would like to see as devaluation how speculators leave and spot buyers enter. I have no idea how deep we’re going to fall, but 20k-25k would hurt both bulls and bears. „

For a better understanding, the funding rate is the recurring fee that long positions pay to short positions in order to match the price of a futures market to the price of a spot market. High funding rates often indicate that there is a large amount of leveraged buyers speculating on an asset that is growing in value in a short time frame.

Wang adds that there are currently many weak spots in the market that make him vulnerable to a possible correction:

“I’m still long on some high quality DeFi that I think we will do very well if my BTC thesis is wrong. Either way, there is a lot of fragility in the system. It’s not the time to be a hero. “

His opinion is similar to that of Scott Minerd of Guggenheim. He had stated in a recent interview with Bloomberg that Bitcoin is probably in the middle of a short-term „speculative frenzy“ or a mania.