Is the crypto market about to repeat the recovery pattern of 2020?

Last weekend, the crypto market saw a sharp decline, with major assets suffering significant losses. Although this has raised concerns, some experts believe that this could be an opportunity to gain potential profits in the future.

This outlook emerges against the backdrop of concerns about the risk of a global recession and escalating trade wars.

The market collapse creates a new generation of crypto millionaires?

Today, the total market value dropped sharply by 216 billion dollars in the past 24 hours. Bitcoin also plummeted below 75,000 dollars.

In this context, analyst Mister Crypto has pointed out that the U.S. Economic Policy Uncertainty Index has reached an unprecedented high. To understand better, this index measures the level of uncertainty in the U.S. economy related to policy changes.

This index combines information about economic instability mentioned in the media with data related to tax policy and budget deficits. A higher index reflects an increased level of instability, which can significantly impact market volatility, investor behavior, and important economic decisions.

Notably, this index has surpassed the levels recorded during the financial crisis of 2008 and the market crash due to COVID-19 in 2020.

"The market has never been as unstable as it is now. It's worse than the Great Financial Crisis and the collapse caused by COVID," he posted.

US Economic Policy Uncertainty Index | Source: Mister CryptoAnalysts say that trillions of dollars have been withdrawn from the stock market. However, he is optimistic that most of this capital will flow into Bitcoin, opening up potential opportunities for cryptocurrency.

Meanwhile, analyst Xremlin has raised concerns about the possibility of a repeat of the 2008 financial crisis. He points out that the likelihood of this is very low in the current market. Instead, he predicts a rapid recovery similar to that following the collapse in 2020.

"The current market crash looks very similar to March 2020. At that time, it was a golden opportunity to enter the crypto market and those who were patient made millions of dollars."

Bitcoin 2020 and 2025 | Source: XremlinWhen comparing to the market downturn in 2020, he points out that the current market may be in the middle of a correction phase. The analyst also emphasizes that after the collapse in 2020, central banks reacted by cutting interest rates and injecting massive liquidity into the economy.

This liquidity surge plays a crucial role in driving stocks and risky assets to record highs in the following year.

"If we are closely following the price movements of 2020, I believe there is a chance you will encounter golden opportunities in crypto. Be patient and start paying closer attention; the coming weeks and months will be decisive. Buy when there is fear, but don't rush; it may still be too early," the analyst explained.

However, he also emphasized that there are still many uncertainties, including the timing and impact of tariff measures, the reactions of other countries, and whether Bitcoin can decouple from the S&P 500 index as a recession hedging tool.

This viewpoint aligns with the opinion of another expert, who believes that the current chaos may pave the way for a new generation of crypto millionaires to emerge.

"Remember the crash due to COVID in 2020. At that time, BTC was priced at $3,850, ETH at $100, and XRP at $0.11. And all these projects helped create millionaires in the following years!"

As markets face unprecedented volatility, the coming months may determine whether this phase marks a turning point for the creation of new assets or a deeper economic recession.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.

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Minh Anh

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