The crypto market recently faced a significant shake-up, with $16 billion in leveraged bullish bets liquidated across major tokens. Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) were hit hard, while several altcoins dropped between 20% and 40%. This event has put the market into a slow bottoming process, leaving investors wondering how long recovery might take.

Liquidity constraints over the weekend have contributed to the slow absorption of excess supply. Market makers are gradually stabilizing prices by arbing away discrepancies, but the multi-step bottoming process could take time. For BTC and ETH, the market is consolidating around $111,186 and $3,759, respectively, while XRP trades near $2.41 and SOL around $177. These levels indicate that the market is trying to find equilibrium after a sudden shock.

Analysts suggest patience is crucial. Zaheer Ebtikar, chief investment officer of Split Capital, explains that after such liquidation events, markets rarely bounce back immediately. Instead, they go through gradual stabilization, where oversold positions are absorbed, and price swings reduce in volatility. External factors like U.S.-China trade tensions could further influence recovery, adding unpredictability.

Despite the turbulence, some long-term investors see opportunity. The current slow bottoming phase may offer chances to accumulate key tokens at lower prices, provided one is mindful of risks and market trends. While swift recovery is uncertain, understanding the multi-step bottoming process can help investors plan and avoid panic decisions.
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