Key Highlights
- A major crypto plunge on Friday, triggered by Trump’s China tariff announcement, resulted in a record-breaking $19.31 billion in liquidations
- Trader Alex Becker argued the crash was a “massive overreaction,” largely driven by “all-time impatience” from investors frustrated that Bitcoin had rallied while other cryptos lagged
- Despite the fear, Becker and others like Samson Mow believe this dramatic wipeout “just reset everything” and actually marks the beginning of the next bull market
- While some analysts predict short-term gains, the overall market sentiment remains one of “Extreme Fear”
A stunning crash in the crypto market last Friday wiped out billions, but according to some prominent traders, this massive downturn might actually be the launchpad for the next major bull market.
The market’s sudden drop was a record-setter. Bitcoin (BTC) plunged over 10% to \$102,000 following an announcement by President Donald Trump about a 100% tariff on China. The fallout resulted in a colossal \$19.31 billion in liquidations, a figure that dwarfed previous major crashes. For context, this single event saw over ten times the losses experienced during the COVID-19 crash and the collapse of the FTX exchange combined.
The “Impatience” Crash and Market Reset
Crypto trader Alex Becker called the sell-off a “massive overreaction,” arguing that the sheer scale of the wipeout essentially “just reset everything.” He attributed a large part of the sharp correction to what he called “all-time impatience” among investors.
Becker explained that for the past year, investors had watched Bitcoin rally significantly while the rest of the crypto market struggled to keep up. This discrepancy led to widespread frustration. He suggested that traders and market makers were exploiting this environment, noting that “Everything they do to the market gets overreacted three to four times,” simply because people weren’t willing to wait a few months for their gains. In his view, this mass impatience drove the panicked selling.
Despite the carnage, Becker believes this is a huge buying opportunity, stating, “I think there’s a very high chance this is the start of the bull market.” His advice was blunt: “I think selling right now could be the stupidest thing you could ever do.” This sentiment was echoed by Jan3 founder Samson Mow, who posted on X, “It’s time for Bitcoin’s next leg up.”
Optimism in the Face of Fear
This optimism comes even as the rest of the market registers significant anxiety. The Crypto Fear & Greed Index, a widely watched measure of market sentiment, posted an “Extreme Fear” score of 24 in its recent update, indicating deep widespread skepticism.
However, several analysts are siding with the hopeful traders. Crypto analyst Benjamin Cowen shares Becker’s positive outlook. Cowen pointed to Bitcoin Dominance—the ratio of Bitcoin’s market cap to the total crypto market cap—reclaiming the 60% mark on Friday. In his analysis, this strengthened position suggests that Bitcoin is set to “continue to climb” in the short term.
Bitcoin’s price itself quickly bounced back, reaching a new high of \$125,100 on Monday, though it still has a long way to go to hit the ambitious year-end targets of \$250,000 predicted earlier by figures like BitMEX co-founder Arthur Hayes.
Not everyone is predicting an immediate rocketing ascent. Economist Timothy Peterson offered a more measured forecast, suggesting Bitcoin will likely enter a three-to-four-week “cooling off period.” He believes the asset will eventually resume its rally, but “perhaps at a slower pace than before.”
In summary, a crash of historic proportions has left the crypto community divided. While the vast majority are gripped by “Extreme Fear,” a camp of prominent traders and analysts argues that the shakeout has cleared the way for a powerful new uptrend, making this moment of maximum pain the perfect time for long-term investors to hold on—or even buy more.
