
In the latest developments in the cryptocurrency world, an upheaval has shaken the markets, with Bybit CEO Ben Zhou revealing that the extent of market liquidations might have hit $10 billion. This revelation surpasses prior estimates, highlighting a massive sell-off triggered by recent geopolitical and economic tensions.
On February 3, approximately $2.24 billion was liquidated from crypto markets within a 24-hour span, according to CoinGlass data. Zhou’s insights suggest, however, that the actual value of liquidations could be significantly higher, estimating figures between $8 billion to $10 billion, given that Bybit’s own 24-hour liquidation amounts to $2.1 billion.
The market turbulence was exacerbated by US tariffs imposed on goods from China, Canada, and Mexico by President Donald Trump. This led to dramatic declines in key cryptocurrencies, with Ether plummeting 16% to $2,368 within an hour on February 3 at 2:11 am UTC. Other altcoins, including Avalanche, XRP, Chainlink, and Dogecoin, suffered losses exceeding 20%, culminating in a staggering 11.4% contraction of the overall crypto market capitalization, now standing at $3.17 trillion, according to CoinGecko.
Adding to the complex crypto landscape, India is reassessing its approach to digital assets amidst evolving global regulatory trends. The country’s economic affairs secretary, Ajay Seth, acknowledged the absence of borders for digital currencies, suggesting a potential re-evaluation of India’s crypto regulations to align with international standards. This comes in the wake of US policy advancements, like President Trump’s executive order to establish the Working Group on Digital Asset Markets, aimed at facilitating cohesive crypto policy formulation.
The recent developments underscore a period of heightened volatility and strategic reassessment as the global community grapples with the challenges and opportunities presented by the burgeoning crypto economy.