Ether (ETH) fell to a two-year low of $1,412 this week and the volatility appears to have been too much for one long-time holder, who sold of the majority of their stash acquired at around $8 in 2016.

On-chain data shows that the wallet in question swapped 14,015 ETH for $22 million USDC over a 15-hour period on decentralized exchange Uniswap.

The investor also sold 6,630 ETH in May 2022 and 4,035 ETH in June 2023 — each time during a major market dip.

This time was no different with ETH having just tumbled from a cycle high of $4,000 in December. They still hold 521 ETH valued at $830,000.

ETH has rebounded in line with the wider market on Thursday, currently trading at $1,598 having risen by 8.2% in the past 24 hours. Trading volume has also increased by 25% to $33 billion as optimism creeps into the market following U.S. President Donald Trump’s decision to pause tariffs for 90 days.

The Nasdaq closed 12% higher on Wednesday, marking its second-largest gain in history, following President Trump’s decision to pause the implementation of tariffs for 90 days. Strategy (MSTR), one of the fastest-recovering stocks and a component of the Invesco QQQ Trust, Series 1 (QQQ) ETF, surged 25%.

Meanwhile, the S&P 500 climbed nearly 10%, recording its third-largest single-day gain—surpassed only by two days in 2008.

While this may seem bullish on the surface, it’s worth noting that the Nasdaq’s three biggest rallies occurred in 2001 and 2008—both during recessions and followed by new lows. Similarly, the S&P 500’s two larger green days were also during the 2008 financial crisis. Investors should be aware of bear market rallies.

There’s growing speculation about why Trump backed off on tariffs. Globally, rising bond yields were rattling markets. According to FOX Business Senior Correspondent Charles Gasparino, the pressure in the bond market may have stemmed from Japan selling bonds—not China, as many had assumed.

As the market rallied, the VIX (Volatility Index) closed at 34, registering the largest one-day percentage drop in its history, surpassing the 2010 record.

Bitcoin (BTC) also saw a spike, briefly rallying above $82,000. However, it remains within the downward channel it has followed since January.

Don’t be fooled by Wednesday’s market turnaround, which saw the S&P 500 equities benchmark climbing by the most since 2008 and significant gains in bitcoin (BTC) and the broader crypto market, as represented by the CoinDesk 20 (CD20) index.

The rally, sparked by President Donald Trump’s announcement of a 90-day pause on tariffs, fueled social-media optimism of an imminent prolonged bull run in both stocks and crypto. That may be overoptimistic, according to analysts at Goldman Sachs and elsewhere, who note that multiweek, double-digit equity price rallies are quite common even during larger bear markets.

“In most bear markets, given light positioning, marginal changes in these variables can have amplified effects on markets. As a result, bear market rallies are quite common,” Goldman’s strategy team led by Peter Oppenheimer said in a Tuesday note titled “Bear Market Anatomy – the path and shape of the bear market.

There have been 19 global bear market rallies since the 1980s and on an average, “they have lasted 44 days and the MSCI AC World return is 10% to 15%,” the note said.

“One of the worst bear markets of history saw about half a dozen major double-digit rallies before all was said and done,” Callum Thomas, founder and head of research at Topdown Charts, said on X referring to the 1930s. “Is the 90-day bounce a BMR?”

Whether the recent bounce signifies the onset of a new bull run or merely a bear market rally won’t become clear until later. However, certain characteristics of a sustained bottom mentioned by Goldman such as attractive valuations, extreme negative positioning, policy intervention and a slowdown in macroeconomic deterioration, are not yet evident.

The Federal Reserve is unlikely to offer support any time soon, while Trump has only halted tariffs for 90 days, meaning trade tensions could escalate again. Plus, tariffs on China continue to rise and if that’s not enough, stocks are not cheap yet.