Today in crypto, several top altcoins including Ether fell double digits as the market continued to reel over Trump’s trade war. India’s government reconsiders crypto stance amid global regulatory shift and a savvy cryptocurrency trader has made nearly $16 million by capitalizing on Ether’s recent price decline.
Ether, altcoins tumble double digits as Trump tariffs further impact
In just one hour, Ether and leading altcoins like Cardano plunged by double digits as the market continued to be affected by US President Donald Trump’s initial set of tariffs against imports from China, Canada, and Mexico.
Ether ETHUSD, the second largest digital currency by market capitalization, dropped 16% within a single hour, reaching $2,368 on Feb. 3 at 2:11 am UTC.
Avalanche AVAXUSD, XRP XRPUSD, Chainlink LINKUSD, Dogecoin DOGEUSD and other top altcoins have fallen over 20% in the last 24 hours, contributing to an 11.4% drop in the crypto market cap to $3.17 trillion, CoinGecko data shows.
India reconsiders stance on crypto amid global regulatory shift
The Indian government is reassessing its approach to cryptocurrency as a worldwide regulatory trend towards digital assets and greater adoption by nation-states emerges.
As per Reuters, Ajay Seth, India’s secretary of economic affairs, mentioned that digital assets “Do not recognize borders” and that the country is reviewing its cryptocurrency regulations to mitigate the risk of lagging behind other nations.
Seth’s comments follow US President Donald Trump’s recent executive order establishing the Working Group on Digital Asset Markets — an advisory body that will help shape crypto policy and explore the development of a US strategic crypto stockpile.
Ethereum trader earns $16 million as ETH price falls to $3,000
A savvy cryptocurrency trader has made nearly $16 million by capitalizing on Ether’s price decline.
The trader generated $15.7 million worth of unrealized profit on a leveraged Ether ETHUSD short position, which involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price and then repurchasing it once the price falls — a strategy used by traders to bet on the price decline of an asset.
The trader opened the 50x leveraged short position when ETH traded at $3,388, with a liquidation threshold of $4,645, Hypurrscan data shows.
Additionally, the trader accrued another $2.3 million in funding fees associated with their leveraged position.
While engaging in leveraged trading can potentially heighten returns, it can substantially magnify downside risks and result in the forfeiture of the original investment.
In January 2024, a pseudonymous trader incurred a loss exceeding $161,000 in a single transaction following the liquidation of a leveraged position, exemplifying the hazards associated with leveraged trading.
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