- 2025 is the year of crypto, says Charles Hoskinson
- He pointed out the resilience of the crypto market following the recent downturn that surpassed the scale of the Luna or FTX collapses
- The recent market crash resulted in 710 billion in losses and 740,000 traders liquidated in 24 hours
Charles Hoskinson, founder of Cardano and co-founder of the Ethereum blockchain platform, called 2025 the year of crypto.
He pointed out that the crypto world showed remarkable resilience, and has already nearly recovered from a recent downturn that surpassed the scale of the Luna or FTX collapses.
The recent market crash resulted in 710 billion in losses and 740,000 traders liquidated in 24 hours. Even Bitcoin, which was at $105k, dropped to around $91k.
Despite that dip, Hoskinson said that the crypto market nearly recovered, and highlighted this as an indicator of the anticipated strength of the upcoming bull market.
There is truth in that if we look at the global crypto market cap.
Overall, it decreased from more than $3.6 trillion to approximately $3.1 trillion during the crash period. That being said, it’s already showing signs of recovery, with a current value of approximately $3.25 trillion.
Bitcoin also started rising again, now being close to $99k.
Related: US SEC Shifts Crypto Enforcement Under New Trump Administration
What Caused the Crypto Market Crash?
The cryptocurrency market experienced a significant downturn following the announcement of new tariffs by US President Donald Trump on February 1, 2025. These tariffs, which included a 25% levy on imports from Canada and Mexico and a 10% duty on Chinese goods, led to widespread market instability.
Investors reacted by pulling out substantial funds from the crypto market, causing a loss of hundreds of billions in market capitalization.
As the leading cryptocurrency, Bitcoin fell by approximately 7.5%, plunging a low of $91,969. Ethereum also experienced a significant decline of about 20.1%, trading at roughly $2,510.
Altcoins suffered the most, with some like XRP dropping by 28.2% and Dogecoin decreasing by 26.9%.
Related: US Crypto Czar Examines New Strategic Bitcoin Reserve ‘Potential’
Crypto Market Liquidations and Recovery
The rapid decline led to massive liquidations in the crypto derivatives market, with over $2 billion wiped out in a short period. This affected more than 700,000 traders, making it one of the largest liquidation events in recent history.
However, as Hoskinson pointed out, the crypto market is showing signs of an impressive recovery (which isn’t unusual on its own), and we have yet to see how far this recovery will go.
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Source: https://coinedition.com/is-2025-cryptos-year-hoskinson-says-yes-after-710b-market-dip-rebound/