The cryptocurrency market is undergoing a slow recovery following a massive $16 billion liquidation event on Friday night, which saw leveraged bullish positions in major tokens like Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL) forcibly closed. This event led to significant price drops, with several altcoins falling between 20% to 40%. Zaheer Ebtikar of Split Capital described the typical recovery process after such a crash, involving phases of market bleeding, data feed stabilization, and eventual market stabilization. The recovery is expected to be gradual, with liquidity challenges persisting over the weekend and market makers strategically buying liquidation orders. The timeline for a full recovery could be extended if U.S.-China trade tensions continue to impact market sentiment.