Last Friday saw a significant drop in the cryptocurrency market triggered by US President Donald Trump’s announcement of tariffs on China. Several altcoins experienced a substantial decline of 60-70%, triggering the largest liquidation event in crypto history. However, according to Bitwise CIO Matt Hougan, this recent market correction is temporary and doesn’t signify a structural shift within the cryptocurrency space. As The Block reports**, Hougan clarified that the downturn was due to excessive leverage being liquidated, with no major corporate bankruptcies or widespread investor panic. Instead, professional investors remained relatively unaffected, suggesting the sell-off did not significantly diminish long-term confidence. Hougan further stated that the decline didn’t disrupt the upward trend of Bitcoin and altcoins**, as they showed resilience during this stress test, albeit with some fluctuations in certain exchange platforms. DeFi protocols like Uniswap (UNI), Hyperliquid (HYPE), and Aave (AAVE) continued to operate normally, only experiencing temporary issues on a few centralized exchanges. The Bitwise CIO’s assessment is that this short-term downturn hasn’t affected the market’s long-term growth drivers, including regulatory improvements, increasing institutional participation in cryptocurrencies, and competition from traditional finance systems. He ultimately predicts that the medium to long-term uptrend will resume after this correction.