The cryptocurrency world was taken aback recently by the latest in a long line of dramatic price drops or “crashes.” The media dubbed this drop Black Monday, akin to similar crashes not only in the cryptocurrency market, but the stock market as well, dominating crypto news today.
In the wake of this latest crash, many are left wondering what the ramifications will be. More importantly, many are asking how long it will take for the market to rebound to previous prices and greater. Let’s take a look at the latest crash, its implications, and how long it may take to recover from it all.
Black Monday
Monday, Apr. 7, 2025, the cryptocurrency market crashed. The downfall was severe, with Bitcoin – the major market indicator – dropping roughly 7.7% in just 24 hours. Other cryptocurrencies were hit as bad or worse. BNB saw a 9% decline, XRP, Solana, and Ether lost around 20%. Prices retraced by between 3 to 5%.
In all, more than $600 million in leveraged crypto positions were ultimately liquidated in that 24-hour period. The U.S. stock market saw a drop, though not as drastic. The stock market opened down about 3% but prices grew by the end of the day.
In the midst of major tariff implications, both the regular stock and cryptocurrency markets could see even more changes. In other countries, the biggest crash in years has been seen. Hong Kong, for instance, saw its biggest single-day drop since 1997 and Australia had its biggest single-day fall since 2020.
Effects are different from country to country, but there are a number of underlying factors at play. The United State’s trade war and aggressive behavior toward allies like Greenland and Canada are certainly spurring things on.
Why Did the Crypto Market Crash?
In order to look to the future, we must first understand why a crash took place at all. We hear all the time from skeptics about how the crypto market is dying. Downturns from major market players like Ethereum, Bitcoin, and other altcoins have led people to wonder if things will ever go back to how they used to be.
Major price drops have always been a major part of investing in crypto. Just like any market, it has its ups and downs. The uptick in inflation certainly plays a part in the drop of crypto prices. The Federal Reserve has decided to stick with financial policies, meaning that borrowing will be more expensive and the flow of money into riskier assets – like crypto – will be reduced.
With fewer interest rate cuts, investors are becoming more averse to riskier assets like crypto. Some investors may have also sold some of their holdings, contributing further to a price drop. These drops are not an unfamiliar occurrence in the crypto market, so the strategy is often to just wait and see.
What is the Worst Single-Day Downfall in Crypto History?
Though Black Monday is a notable event in the history of cryptocurrency, it isn’t the worst single-day price drop in history. Most people use Bitcoin as a barometer of the crypto market, in general, and that single-day record came during the initial days of the COVID-19 pandemic.
In a sell-off related to the virus, March 12,2020 saw a whopping 50% drop in Bitcoin. This came in the wake of the pandemic status set by the World Health Organization. The global stock market was sent into a panic. With traders needing cash, they were selling everything, including crypto assets.
Like any other previous drop, the crypto market began to see a bounce back almost immediately. Less than 24 hours after the crash, Bitcoin regained over half its value. By April – a month later – it had recovered its full value of March. Of course, stimulus payments in 2020 and 2021 had a pivotal impact in the crypto market’s recovery.
Other major downfalls occurred previously. Mt Gox, an exchange that accounted for 70% of all crypto trading at the time (2013), suspended operations for 24 hours as Bitcoin slowed down substantially.
There was also a drop after the collapse of exchange FTX in November 2022. That drop caused Bitcoin to decline by 15%; it took a few months before it was able to fully recover. The lesson is that the cryptocurrency market always rights itself after downturns.
Recovery From Other Historic Events
Traditionally, the cryptocurrency market has seen a rebound in the wake of major drop-offs. The escalating trade war between the United States, Canada, Mexico, and China provides some uncertainty for how the United States market will respond, however.
Ultimately, it is virtually impossible to predict whether crypto will rise, fall, or crash out completely. Likewise, it can’t be accurately predicted when the markets will recover. We have seen bounce backs in the past, some as quickly as 24 hours following the drop.
It is hard to say when a bounce back could occur in the United States. With the aforementioned trade issues and pending tariffs, crypto investors will have a more conservative approach given the speculative nature of the market.
Which Crypto(s) Will Recover Fastest?
The beauty of the cryptocurrency market is that there are several options to choose from. Though Bitcoin is the leader of the market, these cryptocurrencies will have different bounce back trajectories. Let’s look at each.
Solana (SOL): Solana has been gaining steam in the last year or two, mostly because it offer lower fees and faster transactions. In the smart contract world, it will play a role. As NFTs, gaming, and DeFi grow in popularity, Solana has been a steady riser.
XRP (XRP): XRP is seeing significant growth because of its use in ETFs. The low-cost international transactions and fast transaction speeds make it a great choice among financial institutions. It has had a strong start to 2025 and looks to have a sharp uptick throughout the year.
Toncoin (TON): Toncoin already has a strong ecosystem and its connection with Telegram only makes it stronger. With expansion into areas like digital payments and online storage, TON should see a fast rebound, especially if it continues to add features.
Polkadot (DOT): Polkadot is different from other blockchains and offers unique advantages to developers. With the upgrade to the Polkadot Virtual Machine (PVM), it should become even faster and more efficient, providing further interest from investors. In addition to a fast bounce back, Polkadot should experience substantial growth as the year progresses.
Final Word
Speculators will be keeping a close eye on the mounting trade difficulties between the United States and major manufacturing allies. Shifting policies will dictate some of that. A more conservative market will certainly play a role as well.
In the end, the crypto market should bounce back as it always has. Whether it takes a few days or a few months remains to be seen. Some lesser cryptocurrencies will certainly struggle in the meantime, but watch the market closely and carefully.
