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Expert points to signs of crypto winter ending and trend reversal
- Owen Lau of Clear Street has identified signs of a trend reversal in the crypto market.
- These include Bitcoin’s rise to $73,000 and increased momentum behind the CLARITY Act.
- At the same time, traders warn that the move could turn out to be a bull trap.
Regulatory developments in the United States, along with rising crypto asset prices, may indicate that the peak of the crypto winter is already behind us, according to CoinDesk, citing a client note from Clear Street.
In the report, analyst Owen Lau pointed to signs that the market’s decline may be slowing. From October 10, 2025 to February 28, 2026, Bitcoin fell by approximately 44%.
However, over the past week — from February 26 to March 5 — the asset’s price increased by 5.8%, according to TradingView.
Moreover, Bitcoin broke above the $73,000 level despite geopolitical instability and the ongoing conflict between the United States, Israel, and Iran.
BTC/USDT hourly chart on Binance. Source: TradingView.
According to Lau, this may signal the beginning of a trend reversal. The analyst refrained from making specific forecasts but highlighted improving market conditions, including stronger regulatory momentum in the U.S. and continued institutional adoption of crypto assets.
“The industry may have reached a turning point, and we believe this growth could continue,” the expert said.
Trump’s involvement and prospects for the CLARITY Act
Lau noted that U.S. President Donald Trump’s statements have significantly increased the chances of passing the CLARITY Act, a bill aimed at defining the structure of the crypto market.
This could happen as early as late summer 2026.
Approval of the bill could serve as the catalyst needed for a new rally in the crypto industry, Lau said, referencing conclusions from analysts at JPMorgan Chase.
The note also mentioned that crypto exchange Kraken received an account at the U.S. Federal Reserve. According to Lau, this could signal further integration of crypto institutions into the U.S. financial system.
Risk of a bull trap
At the same time, some traders believe that the Bitcoin market may be forming a bull trap.
They point to a similar pattern observed in 2022.
This chart has perfectly predicted the current Bull Trap to $73K.
We’re mirroring the 2022 pattern right now, and $BTC will dump to $45,000 in 12 days.
Position accordingly. pic.twitter.com/57qy9dxAbT
— Lofty (@0xLofty) March 4, 2026
In this scenario, prices rise first, attracting traders into the market, but are followed by a sharp sell-off that pushes prices significantly lower.
See also: "How the Strait of Hormuz Affects Bitcoin: BTC Price Faces the Iran Test"
