The recent cryptocurrency market turmoil on Friday led to drastic falls of up to 95% in certain coins within a single day, but analysts from The Kobeissi Letter assert this indicates no long-term bearish sentiment or weakening underlying principles.
This sudden downturn, described as a “perfect storm” of short-lived factors, ignited a staggering $20 billion in liquidations.
Liquidity became a critical factor as the plunge was exacerbated by the news from Donald Trump regarding 100% tariffs on China, as highlighted by investment analysts. They note that the market is still primarily bullish: \
“A technical correction was overdue; we think a trade deal will be reached, and crypto remains strong. We are bullish.”
Translation: “تنظیم فنی برای مدت طولانی به تعویق افتاده بود؛ ما فکر میکنیم که توافق تجاری به دست خواهد آمد و کریپتو همچنان قوی باقی میماند. ما خوشبین هستیم.”
Friday’s crash flushed out nearly 1.6 million traders from their investments, surpassing earlier liquidity crises like the FTX collapse and the Terra/LUNA incident. \
Analysts caution that this volatility may persist as the markets respond to Trump’s tariff news and its broader economic impacts. Cory Klippsten, CEO of Swan Bitcoin, advised traders to be prepared for ongoing fluctuations. He believes this downturn will compel leveraged traders to exit while paving the way for potential future surges.
Further discussions among market experts suggest the reported $20 billion in liquidations may be just the beginning, hinting towards more severe repercussions for market participants.
