- Crypto market recovery may take months after record $2.24B liquidations triggered by tariffs.
- Bitcoin fell below $100K, showing high volatility amid economic concerns and market uncertainty.
- Analysts warn that past crypto crashes took months to recover, urging patience from investors.
The crypto market may take months to recover after a major liquidation event. Analysts say that altcoins may not reach December highs soon. The event led to billions of dollars in losses for investors.
Massive Liquidations Hit the Market
Over $2.24 billion was liquidated from the crypto market within 24 hours. Bybit CEO Ben Zhou estimated total liquidations could be between $8 billion and $10 billion. The liquidation event was triggered by economic concerns linked to former U.S. President Donald Trump’s tariff threats.
Trump introduced a 25% tariff system that applied to products coming from Canada, Mexico, and China. Later, he paused the planned tariffs for Canada and Mexico after negotiations. However, the damage had already been done, causing panic among investors.
Bitcoin Faces Strong Volatility
Bitcoin fell to $92,584 on Feb. 3, breaking below the $100,000 mark for the first time in a week. It briefly recovered above $102,000 the next day but later dropped to $97,570. The price movements reflect uncertainty in the market as investors react to economic developments.
Crypto analyst Matthew Hyland said that the market bottom may be in place. However, he warned that recovery could take months. He pointed out that previous market crashes had similar patterns.
Historical Trends Indicate Delayed Recovery
Bitcoin took five months to recover after the March 2020 COVID-19 market crash. During that time, the price dropped by 47% before gradually climbing above $11,000. Analysts say that similar market events in 2022 also took months to stabilize.
The Terra blockchain collapse in May 2022 and the FTX exchange failure in November 2022 led to long recovery periods. Hyland noted that sharp price rebounds rarely happen in just a few days. He added that even strong recoveries take weeks with multiple dips along the way.
Investors Remain Cautious
Market participants are closely watching economic developments that may affect crypto prices. Bitcoin volatility persists due to investor reactions toward worldwide financial regulations. Many expert analysts suggest financial market participants need to exercise patience during this upcoming period.
Hyland emphasized that a straight recovery is unlikely. He urged traders to set realistic expectations and prepare for market fluctuations. The crypto market will need time to stabilize before seeing strong growth again.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed