Bitcoin bounce and Kospi recovery. Bear trap or have we hit the bottom?

Bitcoin reached its highest price in nearly a month after reports of a potential new ceasefire between Iran and the United States reached the stock and crypto markets. In Asia, South Korea’s Kospi received a significant boost, rising 5% (this morning the bounce continued). Is this the start of a serious recovery or merely a minor bounce (also known as a bear trap) during a descent?

Green

With a gain of around 13%, the month of July is finally looking promising again for Bitcoin, which has posted a solid rise over the past few days.

The low of $58,000 is now three weeks in the past, and Bitcoin appears to be breaking out of the top of its downward trend channel; this paves the way to last month’s peak, which sits just above $67,000.

Can we finally close out the month in the green again for Bitcoin?

Well, that will also depend on the performance of the AI-related stocks held by many investors—stocks that, in many cases, were purchased alongside Bitcoin ETFs.

Kospi

Investments in AI have proven highly volatile in recent weeks; for instance, South Korea’s Kospi index entered a technical bear market following a sharp correction.

Yesterday, however, the situation improved significantly, partly due to a drop in oil prices, allowing the Kospi to rise by 5%.

Nevertheless, AI-related stocks remain under enormous pressure in both Asia and the United States. By now, investors are openly questioning the high valuations of these stocks and whether the massive investments in AI infrastructure will generate sufficient returns to justify the high share prices we are seeing.