A crypto analyst suggests that the crypto market might take until April to recover from major liquidations triggered by tariff threats from US President Donald Trump, raising concerns over a prospective trade war.
Largest Liquidation Event in Crypto History
February 3 marked the largest liquidation event in crypto history, with over $2.24 billion liquidated in 24 hours. Some experts estimate the figure could have been significantly higher.
Impact of Trade Wars
This occurred amid concerns over a potential trade war due to Trump's tariffs on Canada, Mexico, and China. Tariffs on Canada and Mexico were later paused after negotiations. On February 3, Bitcoin fell to $92,584, dropping below the crucial $100,000 level.
Historical Precedents
Events in 2020 and 2022 showed that recovery from such market disruptions could take over two months. For example, the market took several months to recover after the onset of the COVID-19 pandemic in 2020.
Analysts expect that the crypto market will need at least two months for full recovery, considering previous major market disruptions.
