Crypto market may take over 2 months for ‘full recovery’ if 2022 pattern repeats

It may take until April for the crypto market to recover after US President Donald Trump’s tariff threats triggered massive crypto liquidations and raised concerns of a trade war, a crypto analyst says.

“You likely won’t see those December highs on most Alts for a minimum of 2 months if not longer, so keep expectations tempered and just expect it to take time,” crypto analyst Matthew Hyland said in a Feb. 4 X post.

Other major events ‘took months’ to recover from

Hyland based his expectations on Feb. 3 being the “largest liquidation event in crypto history,” with over $2.24 billion liquidated from the crypto markets within 24 hours. Some crypto commentators suggest the figure could have been significantly higher.

Bybit co-founder and CEO Ben Zhou said, “I am afraid that today’s real total liquidation is a lot more than $2 billion, by my estimation, it should be at least around $8 billion -10 billion.”

It came amid escalating concerns over a potential trade war caused by Trump’s 25% tariffs on Canada, Mexico and China. Trump later paused the planned tariffs on Canada and Mexico after negotiations.

On Feb. 3, Bitcoin (BTC) fell to $92,584, dipping below the $100,000 psychological level for the first time since Jan. 27.

While it briefly rose above $102,000 the next day, it has since retraced, currently trading at $97,570 at the time of publication, according to CoinMarketCap data.

Hyland said this signals that the “low is in” but warned that other events in 2020 and 2022 that caused similar market disruption “took over 2 months for the full recovery to take place.”

In 2020, the onset of the COVID-19 pandemic saw Bitcoin’s price shed as much as 47% of its intraday value from March 12 to March 13, with BTC falling to $5,017. By August, just five months later, Bitcoin was trading above $11,000.

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Similarly, in 2022, the collapse of the Terra blockchain in May and the collapse of the crypto exchange FTX in November both “took months” to recover from.

Hyland said a “straight recovery” in a matter of days “is just not likely.”

“Even a V shape like 2020 took weeks with many dips on the way back up,” Hyland said.

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