Crypto liquidations hit $2.24B after tariff threats. Analysts predict months for recovery. Stay updated on market trends. #Crypto #Bitcoin
Published: Feb 6, 2025 at 05:13 AM
- 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.
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 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.
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.
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.
Cryptonewsland – Your Daily Crypto News – Read More