With the current state of the market, after one of the largest liquidations in the history of the crypto industry, an analyst is insisting that altcoins could take two months to recover from the gains they have shed over the last couple of days.
According to a tweet by crypto and stock market analyst Matthew Hyland, it is unlikely that altcoins will see a straight recovery within the next few days. Judging by past data, the cryptocurrencies could even take more than two months to find their way back up.
Altcoins Need 2 Months to Recover
Following bitcoin’s (BTC) $10,000 price slump over the weekend and into Monday, the altcoin market bled out, with many registering massive double-digit declines within hours. This market wipeout was triggered by United States President Donald Trump imposing tariffs on Canada, Mexico, and China.
The trade tariffs announcement led to one of the largest dumps in crypto history, with over 700,000 traders liquidating for more than $2.3 billion and the crypto market cap plummeting by at least 12% within a day.
Although the broader crypto market has shown signs of recovery within the last 24 hours, especially with President Trump temporarily pausing the tariffs against Canada and Mexico, most cryptocurrencies are still far from their pre-weekend levels.
Hyland stated that it is likely that the low is in for this cycle. He cited a similar liquidation event seen in 2020 during the COVID-19 crash, explaining that altcoins took more than two months to recover from the decline they saw at the time fully.
No High Expectations
Furthermore, the analyst highlighted more recent market liquidations witnessed during the TerraLuna dump in mid-2022 and in the aftermath of the bankrupt crypto exchange FTX implosion in late 2022. He asserted that recovery from previous experiences all took months.
Hyland urged crypto traders to keep their expectations “tempered” because they will not see the price highs recorded by most altcoins in December 2024 for at least two months. Bearing in mind that the crypto market is unpredictable and “can do anything,” Hyland still insisted that traders should expect the recovery to take time.
“I will gladly be wrong, but assuming there will be a straight recovery within days is just not likely and will probably make you uneasy if it doesn’t happen. Even a V shape like 2020 took weeks with many dips on the way back up,” the analyst stated.
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