The Crypto market is going through a period of turbulence, and altcoins seem far from finding their summits in December. According to analyst Matthew Hyland, it will probably be necessary to wait until April or more, to attend a complete recovery.
A crypto market under pressure: liquidations and uncertainties
On February 3, the Crypto market experienced one of the largest liquidation events in its history.
Over $ 2.24 billion was liquidated in 24 hours. This plunged altcoins into a downward spiral.
Ben Zhou, CEO of Bybit, even estimates that the real figure could reach $ 8 to 10 billion. These mass liquidations were launched by the threats of customs tariffs of former American president Donald Trump, creating a climate of uncertainty and panic.
Bitcoin, often considered a refuge in times of crisis, has not been spared. On February 3, he fell under the psychological bar of $ 100,000, reaching 92,584 dollars, his lowest level since the end of January.
Although it has briefly rebounded, its course remains volatile, reflecting the nervousness of crypto investors. This fall led to its wake the altcoins, which are struggling to get up.
Matthew Hyland emphasizes that these events recall the crises past, like that of 2020, where the market had taken several months to recover. The COVID-19 pandemic then caused a 47 % drop in Bitcoin in one day, before a gradual recovery over several months. A similar scenario seems to be taking shape today.
The lessons of the past: patience and prudence
Previous cycles of the Crypto market offer precious clues to understand the current situation.
In 2020, after the initial shock of the pandemic, the flagship crypto took five months to find a stable level, ultimately exceeding the $ 11,000 in August. Similarly, in 2022, the collapse of Terra and the bankruptcy of FTX led to lasting disturbances, requiring months of consolidation before a return to normal.
Hyland insists that quick recovery is unlikely. “Even a V-shaped form, like that of 2020, took weeks with many drops before going up,” he explains.
This prospect invites investors to adopt a patient and measured approach. Altcoins, often more volatile than Bitcoin, could take even more time to find their heights.
However, this period of consolidation is not necessarily bad news. It allows the Crypto market to get rid of excesses and lay the foundations for healthier growth. For experienced investors, it is also an opportunity to accumulate assets at attractive prices, for a future rebound. Does Dogecoin are one of them? These data are the bearer of hope.
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