A crypto analyst, Matthew Hyland thinks that we’re looking at a potential wait until April for a full recovery, if history decides to repeat itself.
December highs? Not today!
Why the gloomy forecast? Well, it all kicked off with US President Donald Trump’s tariff threats, which sent shockwaves through the crypto market, leading to a massive wave of liquidations.
Hyland dropped this bombshell on February 4 via X, so, if you’ve been holding your breath for a quick bounce-back, maybe exhale a little.
“You likely won’t see those December highs on most alts for a minimum of 2 months if not longer.”
Billions
The drama reached its peak on February 3, dubbed the largest liquidation event in crypto history so far. $2.24 billion vanished from the market in just 24 hours, but some insiders think that number could be much higher.
Ben Zhou, co-founder and CEO of Bybit, estimated that the actual total could be between $8 billion and $10 billion.
This chaos comes against the backdrop of rising fears about a trade war, thanks to Trump’s proposed 25% tariffs on Canada, Mexico, and China.
Although he later hit pause on those tariffs for Canada and Mexico after some negotiations, the markets are reacted.
Buy the dip?
Bitcoin took a dip to $92,584, slipping under the psychologically significant $100,000 level. It had a brief moment of glory when it popped back over $102,000 the next day but has since settled around $97,500 as of now, in the time of writing.
Hyland noted that while we might have hit a low point in prices, history tells us that recoveries from similar market meltdowns aren’t quick fixes at all.
He pointed out that back in 2020 when COVID-19 hit hard, Bitcoin plummeted by nearly 47% in just two days but managed to claw its way back above $11,000 by August.
Similarly, the collapses of Terra and FTX in 2022 took their time to recover.
