CandleFocus

Is this crypto sell-off the worst one?

Author: Content Editor
The crypto market experienced a significant downfall on Feb. 3, resulting in billions of dollars in leveraged crypto positions being liquidated. Some experts claim it to be the worst crash in history, surpassing previous collapses such as the FTX and Terra Luna collapses and even the COVID-related plunge. The exact amount of liquidations is disputed, with estimates ranging from $2 billion to $8-10 billion. The crash is compared to previous Bitcoin price drops, with losing over 50% in a single day considered worse than the 13% drop on Feb. 3. The 2022 crises related to the Terra Luna collapse and FTX shutdown had more severe liquidations, but did not see as significant of a drop in Bitcoin price. Despite the market downturn, many believe it does not signify the collapse of the market. The BTC price has since started to recover, approaching $100k again and recouping over half of the losses. Seasoned crypto enthusiasts see this as a buying opportunity. Traders who used leverage suffered the most, while long-term hodlers understand that the BTC price will recover, as it has in previous crashes. The overall trajectory of Bitcoin is viewed as upward, despite periodic declines.

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