The crypto money market experienced a harsh decline due to US President Donald Trump’s trade war threats and high liquations. Analyst Matthew Hyland argued that the return of Altcoin prices to December levels may last at least April.
Liquidations shook the crypto market
The crypto market experienced one of the largest liquidation in history on February 3. The price of BTC almost crashed and $ 2.3 billion liquidation took place in 24 hours. However, some market commentators think that the real figure is much higher.
Ben Zhou, Founding Partner and CEO of Bybit, said that the total liquidation is between 8 and 10 billion dollars. This wave of large liquidation was triggered by Trump’s panic among investors after the threat of bringing 25 %customs tariff to Canada, Mexico and China. Trump stopped the tariffs to be applied to Canada and Mexico as a result of negotiations. However, the uncertainty in the markets continues.
The recovery process for Bitcoin and Altcoins
On February 3, Bitcoin fell below 100,000 dollars of psychological level and fell to $ 92,584. The next day, the BTC tested $ 102,000, is currently trading at $ 97,770.
Analyst Matthew Hyland said that this withdrawal may be a signal that the market has reached the bottom, but a complete recovery may take more than 2 months. Previously, in the years 2020 and 2022, when similar declines took place, it took a few months for the markets to return to their old levels.
Lessons learned from past crypto crises
At the beginning of the COVID-19 pandema in 2020, Bitcoin lost 47 %value between 12-13 March and fell to $ 5,017. However, the recovery process lasted five months and the BTC was able to increase over $ 11,000 in August.
Similarly, the collapse of the terra ecosystem in May 2022 and the bankruptcy of the FTX stock exchange in November largely shook the markets. After both events, the recovery of the market took months.
Crypto The market is not expected to recover quickly
Hyland said that even a “V -shaped gathering in the crypto market may last weeks and prices will fluctuate many times. Emphasizing that even the recovery process in 2020 was not completed within a few weeks, the analyst said that after such crises, the markets should not be expected to return to their old levels immediately.
In the coming months, how the market will deal with trade war concerns and economic uncertainties will be closely monitored by investors.
