$BTC cryptocurrencies, which have experienced even sharper declines, of 70-80%, the rise is much more pronounced. A coin that falls from $200 to $40 needs to rise an astonishing 400% to return to its original value. That is why so many investors find themselves trapped in losses that seem impossible to recover.

This basic math explains why 95% of people in the cryptocurrency market are losing money. Most bought during the boom, before the collapse, and now, only a few strange "parabolic rise" can save them. For those who bought during the recent declines, the odds are better, but recovery still depends on extraordinary circumstances. The challenge with this type of legendary recovery is that there is no solid reason or narrative to believe it will come soon.

Even if we assume that a major global event, such as the return of a prominent political leader, drives optimism, what comes next, temporarily? Cryptocurrency markets nearly collapsed even under favorable conditions.

If the global economic situation worsens, with economists predicting deflation and a sharp decline in liquidity, the cryptocurrency market could face one of its toughest tests yet.

This fragility is already evident: despite slight recoveries, most altcoins have not recovered even 15% of their previous losses.